Text: Giannis Seitanidis
Photography: Panagiotis Mina
Since 2008, when the first contract with an hydrocarbon exploration and extraction company was signed, the Republic of Cyprus has put itself on the global energy map. The hydrocarbon reservoirs that were verified in the Eastern Mediterranean, upgraded the region to a European strategic asset. The crucial –for Cyprus– energy portfolio is managed by a man of the markets, Yiorgos Lakkotrypis, who in the spring of 2013 went from being a top ranked Microsoft executive to becoming a politician. Five years later, with breadth and depth of experience, he is ready to bring forth concrete results: “I believe that in all those years that I served as a minister, I have accumulated a vast experience in crucially important sectors of economy and overall”, he shares with us in his interview to Welcome, and undertakes a personal account by adding “I am greatly honored by the trust invested in me by the President of the Republic, and I honestly feel I have a grave responsibility towards him and especially towards our fellow citizens who, understandably, are looking for solid results. This is precisely the reason why one of the greater benefits I have gained during my tenure as a minister, is the satisfaction of seeing our work having a positive impact on our country”.
The course
The assignment to which Mr Lakkotrypis is referring to, is difficult, requires patience but also determination: “Implementing the strategy of the Republic of Cyprus on hydrocarbons exploration is ongoing, with the latest natural gas reserves discovery in 'Calypso' field, within block 6, confirming the existence of good quality carbon reservoir equivalent to 'Zor' (the Egypt reservoir and largest ever discovered in the Mediterranean). All our licensees continue their exploration plans unimpeded, while exploratory drillings will be performed by ΕΝΙ and TOTAL within 2019”.
The giants
What reinforces this sense of satisfaction, as well as certainty for the actions undertaken until today, is the attraction of several energy giants attracted to the EEZ: “Since 2008, when the first contract was signed, and up until today, hydrocarbon exploration licensees continue their activities in a stable legal and tax environment for investors. The only risk their investments may have to face is of a technical nature. However this is an inherent element of the oil and gas industry worldwide, and it is of no coincidence that our EEZ has attracted global giants, that constantly increase their presence here”, insists the minister of Energy.
The pipelines
Energy goes hand in hand with geopolitics; however the companies financing hydrocarbon exploration are the ones that hold first say as to how the hydrocarbons should be exploited. “The proposal for the exploitation of a verified natural gas field is submitted by the licensees and any decision requires the approval by the Ministerial Council. The optimal option for 'Aphrodite' (Cyprus’ verified natural gas reservoir), taking into account the existing financial and commercial conditions, is the connection of the 'Aphrodite' field with underwater gas pipelines to Egypt for liquefaction and exportation”, Mr Lakkotrypis explains, while he also considers the potential of “a liquefaction station in Cyprus”, a project “that depends on many factors, primarily on the quantity of available natural gas”.
In regards to the East Med pipeline for the transportation of natural gas from Eastern Mediterranean to EU, through Greece and Italy, “its main scope is to offer yet another option for the commercialization of the existing, but most importantly, future discoveries in Eastern Mediterranean”.
Regional cooperation
Another dimension of verified natural gas fields is the opportunity to further regional cooperation. Egypt, Israel and Cyprus already work closely on matters of energy: “Cooperation in the field of hydrocarbons could potentially reinforce the political relations between the countries in the region, acting as a catalyst in defusing tensions and bringing about stability and peace”, Mr Lakkotrypis highlights.
