2023 Doing Business in Cyprus (UK Edition)
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DOING BUSINESS C YPRUS<br />
31<br />
UNITED KINGDOM EDITION<br />
ENI of Italy and Total Energies of France hold the largest number of licences (Blocks<br />
2, 3, 6, 7, 8, 9 and 11) while Kogas of South Korea shares the licences with ENI and Total<br />
(Blocks 2, 3 and 9).<br />
ExxonMobil announced the discovery of an estimated 5 to 8 tcf <strong>in</strong> ‘Glaucus-1’ of<br />
Block 10 <strong>in</strong> 2019, while ENI confirmed Block 6 discoveries of around 2.5 tcf <strong>in</strong> ‘Cronos-1’<br />
and 2-3.5 tcf <strong>in</strong> ‘Zeus-1’ <strong>in</strong> late 2022. Further drill<strong>in</strong>g has taken place and updates and<br />
confirmations of discoveries could be announced with<strong>in</strong> the next year, <strong>in</strong>clud<strong>in</strong>g a f<strong>in</strong>al<br />
decision on the development of Aphrodite.<br />
In addition to offshore discoveries <strong>in</strong> the last decade, a range of other new energy<br />
opportunities have come to the fore. In December 2019, <strong>Cyprus</strong> signed a landmark<br />
deal with a Ch<strong>in</strong>ese-led consortium to build a €290 million LNG import term<strong>in</strong>al at<br />
Vassilikos. The consortium construct<strong>in</strong>g the project <strong>in</strong>cludes Ch<strong>in</strong>a Petroleum Pipel<strong>in</strong>e<br />
Eng<strong>in</strong>eer<strong>in</strong>g Co. Ltd, Metron SA, Hudong-Zhonghua Shipbuild<strong>in</strong>g and Wilhelmsen<br />
Ship Management. The term<strong>in</strong>al will <strong>in</strong>clude a float<strong>in</strong>g storage and regasification<br />
unit (FSRU), a jetty for moor<strong>in</strong>g the FSRU and related <strong>in</strong>frastructure at Vassilikos. The<br />
FSRU, expected to be completed by the end of 2024, attracted €150 million <strong>in</strong> f<strong>in</strong>ance<br />
from the European Investment Bank (EIB), €80 million from the European Bank for<br />
Reconstruction and Development (EBRD), €101 million from the EU’s Connect<strong>in</strong>g<br />
Europe Facility as well as an equity contribution of €43 million from the Electricity<br />
Authority of <strong>Cyprus</strong> (EAC).<br />
Parallel to this, <strong>Cyprus</strong> has been ramp<strong>in</strong>g up its renewables and storage capacity,<br />
with support from the EU’s €1.2 billion Recovery and Resilience Facility (RFF). The<br />
renewable energy sector could be one of<br />
the most attractive areas for <strong>in</strong>vestment<br />
I<strong>Cyprus</strong> has been ramp<strong>in</strong>g up<br />
its renewables and storage<br />
capacity, with support from<br />
the EU’s €1.2 billion Recovery<br />
and Resilience Facility (RFF).<br />
and jo<strong>in</strong>t ventures with other countries.<br />
For example, the UAE and Saudi Arabia<br />
have been pioneers <strong>in</strong> clean energy,<br />
especially <strong>in</strong> the field of hydrogen, and<br />
are keen to export its RES know-how and<br />
create synergies. Saudi Arabia – dubbed
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