On 21 December 2016, the Ministry of Energy announced that the Republic of Cyprus will commence negotiations with the selected bidders for the terms and conditions of the Production Sharing Contract ('PSC') in the context of awarding licenses for three offshore blocks of the Cypriot Exclusive Economic Zone ('EEZ').

Blocks 6, 8 and 10 were put up for tender as part of the 3rd licensing round for hydrocarbon exploration in the Cypriot EEZ with the following applicants submitting bids by 22 July 2016:

Block Bidders Operator
6 ENI Cyprus Ltd / TOTAL E&P Cyprus B.V. ENI Cyprus Ltd
8 Capricorn Oil (Cairn Energy) / Delek Drilling /
Avner Oil Exploration
Capricorn Oil (Cairn Energy)
8 ENI Cyprus Limited ENI Cyprus Limited
10 ENI Cyprus Limited / TOTAL E&P Cyprus B.V ENI Cyprus Limited
10 ExxonMobil Exploration and Production Cyprus (Offshore) Limited /
Qatar Petroleum Internationa Upstream O.P.C.
ExxonMobil Exploration and Production Cyprus (Offshore) Limited
10 Statoil Upsilon Netherlands B.V. Statoil Upsilon Netherlands B.V.

The Council of Ministers, having considered the recommendation of the Minister of Energy and the preparatory report of the technical Advisory Committee on Hydrocarbons Exploration, has selected the following bidders for negotiations over the PSC terms and conditions:

Block 6: ENI Cyprus Limited / Total E&P Cyprus B.V.

Block 8: ENI Cyprus Limited

Block 10: ExxonMobil Exploration and Production Cyprus (Offshore) Limited / Qatar Petroleum International Upstream O.P.C.

In case of a successful outcome of the negotiations, the licenses over the three blocks are expected to be awarded to the above bidders. If the negotiations fail with respect to a specific block, the respective runners-up will be invited for negotiations. According to the Minister of Energy, the negotiations with the selected bidders are expected to be completed during January 2017 with the respective PSCs signed shortly after.

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