As Cyprus recovers from the disappointment over the failure to find commercially viable natural gas at the Electra-1 target, Energy Minister George Papanastasiou has said the outcome is not as negative as it seems.
He noted that Electra-1 had only a 20 per cent chance of success from the outset. “The result is actually quite encouraging,” he said. “It suggests that reserves may exist elsewhere in the area.”
He added that the deep borehole drilled at Electra-1 allowed for vertical, three-dimensional seismic studies of the surrounding region – a significant investment, costing millions of euros.
On Tuesday, President Nikos Christodoulides confirmed that the company drilling in Cyprus’ exclusive economic zone (EEZ) is now “moving towards a new drilling target.”
“I was recently in Texas for meetings with both Exxon and Chevron and the plans are continuing as drafted,” the president said at the 15th Nicosia Economic Congress.
Speaking on CyBC radio, Papanastasiou said he was surprised by the media’s strong reaction to the lack of findings.
“Not discovering commercially viable quantities should concern all Cypriots, not just the government or the president,” he said. “If the results fall short of expectations, it’s disappointing for everyone.”
He emphasised that he had never held high hopes for Electra-1. “When drilling began, we knew there was only a 20 per cent chance of success due to the area’s geological profile, which was evident from 3D imaging studies.”
Papanastasiou went on to explain why the news was not so bad.
“The presence of an active petroleum system – meaning gas and a reservoir – within the basin where Block 5 lies is a positive and encouraging sign, even without commercially viable quantities,” he said.
Drilling had to stop, he explained, because going deeper would be dangerous due to increased pressure. However, work is ongoing. “Samples are now being taken from the borehole walls to better understand the lithology,” he said.
He added that “at this point they are trying to create a vertical seismic profile […] to better understand the seismology in the surrounding area.”
Geology, he noted, does not adhere to the boundaries of one block. “There’s a strong possibility of reservoirs in neighbouring blocks as well.”
The minister said the drill was moving to the Pegasus target on April 23, between Electra and Glafcos targets, to explore what is in the area.
“The possibility of finding natural gas in Pegasus is around 60-70 per cent,” he said.
Papanastasiou added that public expectations had been “inflated due to statements from the operating company and independent analysts.”
He also spoke about progress at the Vasiliko natural gas terminal. He said the vessel Prometheus had been released and was undergoing repairs, expected to be completed by August.
Once certified, it will head to Vasiliko, provided the infrastructure is ready.
The Natural Gas Infrastructure Company (Etyfa) has set the target for project completion at April 2026.
In the meantime, the minister noted, electricity costs could be lowered through photovoltaic energy – but there is currently no storage for it.
He said the government expects renewable energy to make up 40 per cent of the electricity mix by next year.
Lastly, he said the Cyprus Energy Regulatory Authority (Cera) is reviewing the possibility of revoking licences for additional PV parks.
