Developments and Prospects of Oil & Gas Exploration in the Eastern Mediterranean Region and ...

38 Pages·2013·1.15 MB·English

Developments and Prospects of Oil & Gas
Exploration in the Eastern Mediterranean Region
and How these Translate to Employment
Opportunities Training and
Education Needs
DR. CHARLES ELLINAS
Executive President
Frederick University, 19 September 2013
Cyprus Offshore Exploration
Review
Cyprus has so far leased 6 Blocks and progress is as follows:
• Noble Energy is conducting a second appraisal drilling in Block 12. The company
will announce the revised estimates volume by October.
• ENI/KOGAS have Blocks 2, 3 and 9 and are about to start their seismic survey
programme, with exploration drilling scheduled to start second half of 2014.
• Total has Blocks 10 and 11, with potential both for oil and gas. They have just
complete their seismic survey programme, with exploration drilling scheduled
in 2015.
Key point: the Government signed the LNG MoU with Noble, Delek/Avner.
Negotiations are in progress for the full LNG Project. Agreement, scheduled to be
completed by December 2013.
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Introduction 
A large number of workers will be needed which may peak to 7,500 during the
construction of the LNG plant at Vasiliko with about 700 jobs to be created during
the operation phase. Note: for every local job created during construction, three or
more other local jobs will be also created for external support, secure and supplies.
Government, Oil & Gas industry and academia should provide the necessary training
to professionals that this new industry demands to function efficiently. Emphasis
should be given to training for lower skills jobs and technicians needed for
construction.
Education is the driving force for the development of the oil & gas industry. Cyprus
needs to invest to education if it is to become a strong energy center in Eastern
Mediterranean.
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LNG Plant at Vasiliko
• The Vasiliko Energy Centre has already been allocated, the required land, by the
Government for the development of the LNG plant and it is available and
sufficient initially for 3 trains.
• Located in the Zygi Municipality in the Southern part of Larnaca District.
• Is a thinly populated area (88 inhabitants/km2) and because it is an existing
industrial area has already most of the required infrastructure.
• Some very sensitive plants are also placed there, such as a Power plant, a Naval
base, the Petrolina and VTTI Storage tank farms. The Zygi Police Station, the
National Guard and some Special Intelligence police units are responsible for the
security of the area.
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Possible Layout of Cyprus LNG Plant in Vasilikos -
Onshore facility to liquefy gas for export
Pre-FEED:
Τechnip have just completed
the Select Phase development
• Concept selection studies
• Collection of site specific
data for FEED
• Permitting and construction
execution plans
• Technical and commercial
FEED RFP bid package
• FEED and EPC project
schedules
• Cost estimate
• One and two train options
A minimum of 6 tcf is needed
to make the LNG Plant viable
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Development of Aphrodite and LNG Plant
The key stages in the development of the Aphrodite gas field and LNG Plant are as
follows:
• Appraisal drilling, as mentioned earlier, has already started, and by Q4 we
should be able to confirm gas volumes. However, if a second appraisal is
needed assessment of commerciality may have to await until well into 2014.
• As a result The Final Investment Decision (FID) for train 1 may be delayed until
2016.
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Development of Aphrodite and LNG Plant
(2)
• We hope to be able to start construction of the offshore facilities, subsea
pipeline and the LNG Plant at Vasiliko in 2016. This is achievable if all
preparation is carried out as planned and will provide good employment
opportunities for Cypriots.
• Delivery of natural gas for the local market will then be expected by the end of
2019/2020.
• And by the end of 2020/early 2021 the LNG Plant is expected to be operational,
starting LNG exports to the Far East Europe and other parts of the world.
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Project Development Stages 
1 MAIN PROJECT MILESTONES 
2 OWNERS ACTIVITIES: IN PARALLEL WITH TRANSITION TO FEED PHASE
3 TRANSITION  TO FEED  PHASE
4 FEED PHASE
5 EPC PHASE
6 DETAILED ENGINEERING
7 PROCUREMENT
8 CONSTRUCTION – TRAIN 1 & ASSOCIATED FACILITIES
9 Site Preparation T1 & Ass. Fac., Piling T1
10 Civil Works – Train 1 & Ass. Facilities
11 Piping Works – Train 1 & Ass. Facilities 
12 Mechanical Erection – Train 1 & Ass. Facilities 
13 E & I Works – Train 1 & Ass. Facilities
14 Painting & Insulation – Train 1 Ass. Fac.
15 LNG Storage Tanks (2 x 180,000m3 Full Containment)
16 LNG Jetty, Loading Platf. (2 Berths) & Flare
17 Precomm./Comm/ Start‐up 
18 FIRST LNG EXPORTS FROM TRAIN 1
How does Oil & Gas Industry Works
MIDSTREAM
UPSTREAM DOWNSTREAM
Searching for 
Transportation by 
Making it useful for 
potential natural 
pipelines and 
consumers  
gas fields
storage 
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List of required skills  
• Bulldozer Operators                                                       
• Back‐hoe Operators or Excavators
• Front‐end Loader or Power Shovel Operators
• Grader Operators
• Heavy Haul Truckers
• Shuttering Joiners 
• Steel Rebar Fixer
• Concrete worker
• Civil Construction Engineering Technologists
• Materials/Geotechnical Technologists
• Drafting/CADD/3D Modeling Technologists
• Survey Technologists
• Crane Operator
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