Cyprus Hydrocarbons Company (CHC), the National Oil and Gas Company of Cyprus, has named Lloyd’s Register (LR) as an independent commercial advisor for its commercial exploitation of hydrocarbons in the Exclusive Economic Zone (EEZ) of the Republic of Cyprus.
In its new advisor role, Lloyd’s Register will advise CHC on oil and gas sales through to development strategies to help the Cypriot oil and gas industry achieve its operational targets. The three-year contract started in August 2016.
Phil Edwards, Consulting Director of Lloyd’s Register’s energy business says: “We are delighted to be working with CHC and the emerging Cyprus oil and gas industry on this prestigious and critical development. Our work includes a number of activities such as assisting CHC in realizing its options and strategies for successful development of the EEZ, and crucially assisting in hydrocarbon sale discussions and agreements with upstream operators and partners active in the Cyprus EEZ.”
As a state-owned company established in 2012, CHC has the mandate to act as the commercial arm of the Government of Cyprus on matters relating to development, production and monetization of oil and gas resources from Cyprus’s EEZ.
Currently, Cyprus’s 15,000- square kilometer EEZ has 13 exploration blocks located to the south of the island. Some estimates suggest that that Cyprus could be sitting on 60 trillion cubic feet (Tcf) of gas. It is most likely that a significant portion of energy will be exported, drawing revenue and fostering growth, LR said.
Demetris Fessas, Executive Manager of CHC says: “As we continue our journey towards developing Cyprus’ offshore natural resources, our focus is on ensuring we apply the right strategic approach and effectively contribute with all stakeholders towards common objectives. Following a rigorous public procurement tendering process with worldwide interest, we are very pleased to have Lloyd’s Register on-board as independent commercial advisors to assist us in delivering on our objectives.”
To remind, Cyprus launched its third offshore licensing round for offshore exploration in Blocks 6, 8 and 10 in March this year and received expressions of interest from several oil majors including Statoil, ExxonMobil, Eni, and Total.