Eni has finalized a farm-in agreement with Total to acquire 50% stake in the French company’s Block 11, offshore Cyprus.
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Map of Block 11, from Total. |
“With this transaction Eni further reinforces its own position in the country, acquiring the right of exploring an area of 2215sq km, nearby the ‘super giant’ Zohr discovery in the Egyptian offshore,” says Eni.
The agreement, in which Total will remain the operator of Block 11, has been approved by the Council of Ministers of the Republic of Cyprus.
According to Eni, an exploration well is expected to be drilled in the block later this year.
The rights on Block 11 were assigned by the Republic of Cyprus to Total in 2013 at the Cypriot government’s second international bid round.
In January, IHS Market said that IHS Total's [Block 11] well is expected to be one of the most critical wells drilled globally in 2017 for the exploration and production industry, especially given the slowdown in exploration drilling worldwide.
“The carbonate reservoir that comprises Zohr is of particularly high quality,” Graham Bliss Ph.D., senior director of plays and basins research at IHS Markit said in January. “As such, it will likely enable development using a minimum number of wells and, therefore, reduce costs and enhance project economics.”
Eni has been present in Cyprus since 2013 through its subsidiary Eni Cyprus and holds exploration rights on Blocks 9, 3,2 (Eni as operator with 80%, Kogas 20%) awarded in the second round. Eni has also been chosen, in the third competitive bid round, as selected bidder for Block 6 (Eni, operator with 50%,Total 50%) and Block 8 (Eni as operator with 100%).
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