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10 Pages

Cyprus 2016 3rd licensing round launch

Cyprus 2016 3rd licensing round launch

Report summary

Cyprus is offering three large, undrilled deepwater blocks on-trend with recent giant gas discoveries in Cyprus, Israel and Egypt. The authorities are looking to capitalise on Eni’s play-opening Zohr discovery, which will draw companies to the multi-tcf potential that could exist in other Miocene Carbonate structures in Cypriot waters.

Despite the tempting prospectivity, the fiscal terms will need to take into account the commercialisation challenges. There is no existing infrastructure or meaningful local gas market that would allow the swift monetisation of any discovery. Value creation will be heavily dependent on securing access to export markets.

Cost recovery and profit share are the two items that will primarily dictate government share, but the size of signature bonus will be the most public indication of interest in the acreage.  But with few able offer large short-term financial commitments, this could lead to some aggressive bidding on the profit-based fiscal terms.

What's included?

This report includes 2 file(s)

  • Cyprus 2016 3rd licensing round launch PDF - 501.56 KB 10 Pages, 6 Tables, 7 Figures
  • Licensing round open.xls XLS - 292.50 KB


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  • High hopes from recent big gas finds, but market access will be crucial
  • Acreage on offer
  • Terms and conditions
    • Timeline
    • Data
    • Evaluation process
  • Prospectivity analysis
  • Economic analysis
    • Fiscal regime
    • Big gas required to create value
    • Round expectations
  • Appendix
    • Development assumptions
    • Price assumptions

In this report there are 13 tables or charts, including:

  • High hopes from recent big gas finds, but market access will be crucial
    • Criteria for success
  • Acreage on offer
    • Three blocks on offer in deepwater Cyprus
    • Summary of offered acreage
  • Terms and conditions
    • Timeline: 300 days
    • Data availability
    • Biddable parameters
  • Prospectivity analysis
    • Neighbouring discoveries
    • Exploration history of relevant blocks
  • Economic analysis
    • Fiscal benchmarking of comparable terms
    • Round 2 terms under different gas prices
    • Potential 4.5 tcf discovery on Block 8 - IRR
    • Potential 9 tcf discovery on Block 10 - IRR
  • Appendix
    • Cyprus 2016 3rd licensing round launch: Table 6
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

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