This article was published in LOGI's May 2020 newsletter in partnership with Kulluna Irada.
A consortium of Italian oil and gas company Eni and French oil giant Total have postponed exploratory drilling off the coast of Cyprus until next year due to the far-reaching impacts of the coronavirus pandemic.
The consortium’s decision to postpone drilling in three offshore blocks follows a similar decision by US-based oil and gas company Exxon Mobil.
Eni-Total are set to push drilling until at least April 2021, while Exxon Mobil moved drilling in one offshore block until September 2021.
In Lebanon, Total has said that drilling that planned for the end of 2020 in southern Block 9 may also be pushed into 2021. The consortium of Total, Eni and Russian firm Novatek are contractually obliged to drill by March 2021.
Cypriot lawmakers have said that they would likely extend contracts for Eni-Total to facilitate the postponement. This can also be done in Lebanon’s case. The consortium can also choose to withdraw from drilling and pay a $40 million penalty.
Photo Credits: Financial Mirror