Indications that gas finds will be high in block 10
But a bonanza in block 10 would be a real game changer for all players in the exclusive economic zone (EEZ).
Should Exxon find a significant amount of gas – even 10 tcf – it would then make sense to likewise divert the gas from the Aphrodite and Calypso fields into a land-based LNG facility.
In this way, development of the (potentially) three fields could be combined, rather than developing them on a standalone basis, for example building separate pipelines.
The Aphrodite play, in block 12, holds an estimated 4 to 4.5 tcf; and preliminary estimates point to anywhere from 6 to 8tcf for Calypso in block 6.
It is for this reason that Ellinas advises both the government and the stakeholders – Noble, Shell and Delek – not to rush with Aphrodite.
“They’ve waited years to develop Aphrodite, so what’s another six months until they see what Exxon finds?”
His remarks relate to developments this week, when it came out that the Aphrodite consortium is pushing for a renegotiation of their Production Sharing Contract (PSC) with the government.
The news was leaked after a briefing given to party leaders by energy minister Giorgos Lakkotrypis.
It was reported that the Aphrodite consortium want to amend the PSC because, having crunched the numbers, they’ve found that their profits from developing the reservoir (laying a pipeline to Egypt) might not justify the investment.