In total, E&P operators have been able to unearth over 1.5 Bboe offshore gas resources in the East Mediterranean Sea Basin.
Discovered conventional gas resources in the East Mediterranean region (MMboe). Source: Rystad Energy UCube.
The past 15 months has been a golden period for operators in the East Mediterranean Sea basin. In total, E&P operators have been able to unearth over 1.5 Bboe offshore gas resources in this region, including Glaucus and Calypso in Cyprus, Nour in Egypt, and Karish North in Israel.
Calypso 1 is a promising gas discovery which confirms the extension of the ‘Zohr-like’ play into the Cyprus Exclusive Economic Zone. Eni reported approximately 6 to 8 Tcfg in place. Rystad Energy estimates the field has around 600 to 700 MMboe of recoverable resources. ExxonMobil’s Glaucus natural gas discovery is the third noteworthy find in Cypriot waters in recent years, following Calypso and Aphrodite. The discovery, in Block 10, encountered 133m of gas-bearing reservoir, with in-place resources of approximately 5 to 8 Tcfg, Rystad estimating the field could hold around 600 to 700 MMboe.
Eni-operated Nour 1 found a ~90m gas column in the North Sinai Concession and the operator plans to accelerate the development with existing facilities. Rystad Energy estimates the recoverable resources to be around 120 to 150 MMboe. The Karish North discovery has a gross hydrocarbon column of nearly 250m with in-place gas resources of approximately 1–1.5 Tcf. Rystad Energy estimates the recoverable resources at 100 to 150 MMboe. Operator Energean plans to develop this through a tie-back to a FPSO unit currently under construction.
Petroleum Export Options from the East Mediterranean Sea Basin
Cyprus has the lowest gas discovery cost at $0.20 per boe, which improves future exploration prospects in the vicinity, but the development of these finds faces the challenge of limited infrastructure. With low domestic demand, Cyprus currently has two options to accelerate development: either to use Egyptian LNG terminals, or to develop domestic floating LNG capacity.
Egypt’s Damietta and Idku are the only LNG terminals in the region that can funnel gas reserves to the global market, with a combined export capacity of 1.75 Bcfpd of LNG export capacity. From 2019, Eni is expected to send gas from Zohr to Damietta, when the facility will be running at capacity. Idku will continue to operate at 20 to 25% of capacity. Cyprus received permission from the EU to construct a subsea pipeline to Idku, and has signed a contract with Egypt for the export of Cyprian gas to European markets. These developments brightened the Aphrodite gas field development prospects via Idku LNG, as Shell is a stakeholder in both projects. Aphrodite, discovered back in 2011, is a cautionary tale of the delays big discoveries in the region face if development is not actively streamlined.
With Egyptian LNG terminals running at almost full capacity, little spare processing capability exists to accommodate recent and future discoveries in Cyprus. However, with 12.5 Tcf of discovered recoverable resources already available, future discoveries could make a future FLNG in Cypriot waters commercially viable.
This Regional Update of oil and gas exploration and production activity from around the world is brought to you by Rystad Energy.
Further Reading on Oil & Gas in the Mediterranean
Some recommended GEO ExPro articles relating to the exploration and production of oil and gas resources in the Mediterranean Sea.
Offshore Deepwater Exploration and Drilling in Greece
Hellenic Hydrocarbon Resources Management
The underexplored deep waters of the east Mediterranean are ready to be investigated for their future oil and gas exploration and drilling potential.
This article appeared in Vol. 16, No. 1 – 2019
Extraordinary Hydrocarbon Potential Offshore Lebanon
Neil Hodgson, Karyna Rodriquez and Paolo Esestime; Spectrum Geo
Unlocking the extraordinary hydrocarbon potential of the Eastern Mediterranean, offshore Lebanon, with Spectrum’s reprocessed broadband seismic data of the Levant Basin.
This article appeared in Vol. 15, No. 5 – 2018
Exploration Opportunities in the Mediterranean
Verity Agar, Paul Bellingham, Nicola Clarke, Elisabeth Gillbard & Ken McDermot; ION
Using newly acquired BasinSPAN™ data, ION creates integrated dataset to improve understanding of the whole Mediterranean Basin.
This article appeared in Vol. 14, No. 5 – 2018
Hydrocarbon Developments in the Eastern Mediterranean
Brought to you in association with NVentures
Hot Spot: Ten gas discoveries across Egypt, Israel & Cyrprus define the East Mediterranean Hydrocarbon hotspot.
This article appeared in Vol. 15, No. 3 – 2018
