Oil boom or no oil boom

General questions & discussions on Cyprus property related matters
Elis
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Oil boom or no oil boom

Post by Elis » 24 Dec 2011 14:40

Cyprus has found gas and oil. loads of it. Therefore youd expect possitve forecasts for the Cypriot economy, yet all forecasters are predicting less than one percent growth.

Id have thought that with the gas and oil findings investors would be falling over themselves to invest in Cyprus hoping to benefit from an expected boom, yet it seems they are not.

Can anyone please explain why investors are ignoring the opportunity to invest in this boom, or is it that there will not be a boom at all, coz im baffled.



Nigel Howarth
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Re: Oil boom or no oil boom

Post by Nigel Howarth » 24 Dec 2011 14:56

No-one knows how much gas there is, estimates are expected very soon. If the reserves prove sufficient and economical to extract then I expect investors will start taking an interest. But it will take a few years before the infrastructure is set up and the gas can be extracted.

Cheers,


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Pantheman
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Re: Oil boom or no oil boom

Post by Pantheman » 24 Dec 2011 18:04

Early days yet. The RoC s not counting its chickens just yet.
It's only a matter of time when we realise the benefits of these extractions then our credit rating will be 'Unlimited'

The percentage growth you are quoting (with glee I might add), is for the coming year. The benefits of the extractions will not happen that fast.

Worry not, the RoC has it all in hand.

Once they announce the second round of licencing we will see much more activity real soon.

The RoC will become Europes energy hub for the next 50+ years.


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Scots Lad
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Re: Oil boom or no oil boom

Post by Scots Lad » 24 Dec 2011 18:55

Pan I think you are being a bit OTT that you think the ROC will be the EU Energy Hub for the next 50 years,

Now one well has been spudded in then tested. Thats all Actually when you look into how many wells the Industry does per year say for example Iraq will do around 5000 wells over the next 4 years, In the Caspian a second platform in the Shah Deniz field plus another Gas Pipeline from Baku to Ceyhan to supplement the second is taking place now.

BP has just made major gas finds in the Nile delta, British Gas and its Hannibal Fields in Tunisia the list goes on.

Personally The Hype being expressed from Cyprus is far OTT As it stands just now Cyprus should be bringing in experts from outside, Set-up a National Oil Company that will protect the interests of Cyprus. Just now the people have not been given the full facts on this subject. ie What the PSA production Sharing Agreement is ? Will the Gas need to be scrubbed say like the GCC Fields

Also though this will cause out rage the best economical route if there is a commercial way is via Turkey.



Pantheman
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Re: Oil boom or no oil boom

Post by Pantheman » 26 Dec 2011 14:39

Scots Lad wrote:Pan I think you are being a bit OTT that you think the ROC will be the EU Energy Hub for the next 50 years,

Now one well has been spudded in then tested. Thats all Actually when you look into how many wells the Industry does per year say for example Iraq will do around 5000 wells over the next 4 years, In the Caspian a second platform in the Shah Deniz field plus another Gas Pipeline from Baku to Ceyhan to supplement the second is taking place now.

BP has just made major gas finds in the Nile delta, British Gas and its Hannibal Fields in Tunisia the list goes on.

Personally The Hype being expressed from Cyprus is far OTT As it stands just now Cyprus should be bringing in experts from outside, Set-up a National Oil Company that will protect the interests of Cyprus. Just now the people have not been given the full facts on this subject. ie What the PSA production Sharing Agreement is ? Will the Gas need to be scrubbed say like the GCC Fields

Also though this will cause out rage the best economical route if there is a commercial way is via Turkey.
Patience, time will tell. Once the new announcements have been made we can take the next step. These things do not happen over night, so we'll have to wait and see.

All the best.

Pan


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Pantheman
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Re: Oil boom or no oil boom

Post by Pantheman » 28 Dec 2011 17:27

Thought I might add this update:

http://www.winnipegfreepress.com/world/ ... 07473.html

Things are looking up for the RoC. Happy days! 8) 8)


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Re: Oil boom or no oil boom

Post by Nigel Howarth » 28 Dec 2011 17:44

There's also an article in today's Cyprus Mail - http://www.cyprus-mail.com/gas/gas-resu ... r/20111228

I hope they manage to bring it ashore quickly - I've got gas-fired central heating!

Cheers


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Scots Lad
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Re: Oil boom or no oil boom

Post by Scots Lad » 28 Dec 2011 18:24

Nigel,

With the CM article it would be wise to read stuarts post and as the Winnipeg freepress well in Canada you are best sticking to Edmonton for the Oilfield.

A good site would be Rigzone.com which will help people.

Now maybe people think I am being on the down-side But over 32 years I have been in the Oilfield and seeing how it grabs people and raises hopes far to high. It is also strange a Political president announcing well results could you imagine say Obama annoucing Exxon wells in Alaska or David Cameron annoucing latest finds in the North Sea ?

Actually Noble did have press releases last week It concerned the Israel fields which are far bigger also it must be noted they been drilling 5 years etc

I think giving the people the full truth and not raise expectations far to high would be wise.



Elis
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Re: Oil boom or no oil boom

Post by Elis » 28 Dec 2011 20:28

Ok so its been anounced, 8 trillion cubic feet of gas found....sounds great.

I know its very easy to go overboard, but surely this gas find must kick start the economy............



Oil and gas workers, office staff, company executives and the like must be coming. There must be dozens of other companies related to servicing the gas and oil industry too,,,,,,,

There was a report by the bbc on the oil finds in Ghana a few years back, it suggested that property prices rose 500% in two years....Now im not suggesting that will happen in Cyprus but surely we will soon see the economy boast beyond the 0.2% forecast for growth....


Hoping 2012 starts to see the begining of a Cypriot economic recovery.




Scots Lad
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Re: Oil boom or no oil boom

Post by Scots Lad » 28 Dec 2011 21:51

Elis,

I sent Nigel by email the official statement from Noble,

1. The Field needs appraisal wells
This means a Semi-sub or drill-ship doing at least 4-7 wells Now Noble only has
one Semi on charter costs about 250k per day excluding well costs plus rental tools


2. The Sea Depth is over 5218 feet This is very deep So a Structured Steel
Jacket very expensive

3. Noble talk that the Basin has estimated 33trillion reserves in 5 fields (four are in
Israelie waters = 24/26 trillion is Israel.)

So from this information You are looking at about 2/3 years appraisal drilling , evaluating
then if there is go ahead you need to drill the Tem-plate for the production wells add two
years by the Semi etc

As to people Semi-subs normally have a crew approx 50 people composed off Expats & TCN crews in the med there no need for them to live in Cyprus etc.
Service companies no need to openin Cyprus just now as the Semi will be mostly working in Israel waters You find the benifits will come to Cyprus in a bout 8 years with a tarriff on the Gas been piped to a Israel port



Elis
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Re: Oil boom or no oil boom

Post by Elis » 29 Dec 2011 00:01

Cant help thinking youre right Scotts Lad, and that the people of Cyprus are in for another mugging.



Pantheman
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Re: Oil boom or no oil boom

Post by Pantheman » 29 Dec 2011 03:27

Scots Lad wrote:Nigel,

With the CM article it would be wise to read stuarts post and as the Winnipeg freepress well in Canada you are best sticking to Edmonton for the Oilfield.

A good site would be Rigzone.com which will help people.

Now maybe people think I am being on the down-side But over 32 years I have been in the Oilfield and seeing how it grabs people and raises hopes far to high. It is also strange a Political president announcing well results could you imagine say Obama annoucing Exxon wells in Alaska or David Cameron annoucing latest finds in the North Sea ?

Actually Noble did have press releases last week It concerned the Israel fields which are far bigger also it must be noted they been drilling 5 years etc

I think giving the people the full truth and not raise expectations far to high would be wise.
Obama and Cameron may not announce such because it is not a first for them. Already powerful wealthy countries have no need. But to Cyprus this is an absolute major find on its door step and potentially worth billions. Money falling from the heavans ! However long it takes, if it is possible to get it then we'll wait and whats 5-8 years we would never make that sort of maney in a life time. So, for as long as there is a good chance to turn this into liquid cash, it brings hope to the people for their future well being and should not be knocked. As I said before time will tell, and we'll get a better feel for this if and when other licences get sold. This in itself would be a good enough indicator to keep up the hope. For as long as Noble are making the announcements, then we have a more truthful picture.
I think the pesimism should stop as it seems to me that the ones who are scaremongering, have an alterior motive about Cyprus.
We will also know when we are getting close when turkey starts to spit fire on all this and starts kicking up again.
All the same, I is a god sent and we should see it through.


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Scots Lad
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Re: Oil boom or no oil boom

Post by Scots Lad » 29 Dec 2011 04:19

Pan/Elis,

Thanks guys for the thread, Pan I seen your many posts on the eastern forum helping people so I know you are a good guy.sorry Elis but till this thread its the first time so sorry.

Lets get this Gas story right and how it can help all people in Cyprus

for example Nigel says he likes gas central heating How many houses in the ROC 500k how many streets you dig up. how many meters per house pumping stations etc its a massive project is it not ?

I and others who have property in Cyprus have tried to rein in the huge hopes political leaders are using the Gas as explanation for there failures, Cyprob gets involved ie we are above the turks israelies willkick ass etc.

Pan & Elis you are sensible people who care about Cyprus Push hard for

1. A Open TV/Forum letting the Cyprus people to ask questions
2. Get a ROC National Energy Company in place WITH EXPAT PROS IN CHARGE this
is difficult i know but there is no cypriot just who can handle this look at the UAE
Sheik MO as he is known has he not ?

3. Think hard 75% plus off the gas as Noble calls it is in WHAT Israel calls its waters
Lebanon does have a case ? The ROC needs AKEL & DISY plus all to have
all political opinion with LEVERAGE ie the ability to give and take.


Sorry If I have bored you guysor think I am anti cypriot (though I would like to get my hands on the head off the Paphos lawyers and his committie) ahh such a joy ! But the President off the Paphos lawyers and his business partner paf paf ilia would not understand integrity

But in the Oilfield I been given awards for my local content by Azerbaijan (2) georgia, Kazakhstan Plus now Th NTC and libyans who now enjoy Democracy WHICH EVERY PERSON WHAT EVER THERE CREED AND COLOR NEEDS



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Re: Oil boom or no oil boom

Post by Pantheman » 29 Dec 2011 11:47

Scots Lad,

thank you for your reply and kind words. as for the stiquette and PPPPP, I am totally with you and they all ought to be *ucked. Good luck also to Andy P and his hearing.

Oh and well done on the awards side. We are no experts on the gas /oil business I leave that to the pros, but looking at your comments, here is what I think:

1. A Open TV/Forum letting the Cyprus people to ask questions - Totally Agree

2. Get a ROC National Energy Company in place WITH EXPAT PROS IN CHARGE this
is difficult i know but there is no cypriot just who can handle this look at the UAE
Sheik MO as he is known has he not ? - There was already an announcement to create an energy Company of Cyprus and having pros on board would certainly be needed. We do not have that expertise so it goes without saying. As for being totally in charge, I don't see that happening though.

3. Think hard 75% plus off the gas as Noble calls it is in WHAT Israel calls its waters
Lebanon does have a case ? The ROC needs AKEL & DISY plus all to have
all political opinion with LEVERAGE ie the ability to give and take. - Where ever it lies, bottom line is, we got something for nothing and we should make the most of it. Numbers at the moment are just academic, everyone who is entitled should get their share. As for the parties,, well can't really comment there, one way or another, they will sort it out whether they want to or not.

All the best.

Pan


For all your property needs, we offer Trust, Integrity, Honesty.
FSB Properties Ltd
Registered and Licensed Real Estate Company Co. Reg. No. 795, Lic. No. 250/E
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