Italian energy firm Eni to drill more for gas deposits off Cyprus coast

Eni has received drilling licenses in six areas, or blocks, south of Cyprus. (AP)
Updated 25 April 2018
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Italian energy firm Eni to drill more for gas deposits off Cyprus coast

NICOSIA, Cyprus: Eni will proceed with more exploratory drilling south of Cyprus over the next 20 months, affirming a “strong engagement and commitment” in a hydrocarbons search off the east Mediterranean island nation, the Italian company’s chief executive said Wednesday.
Claudio Descalzi said that Eni has already invested around €700 million in that search off Cyprus and will carry on exploration until more gas deposits are discovered.
“Clearly in 2018 and 2019 we are going to drill wells and make studies,” Descalzi said after talks with the Cypriot president. “There is a good cooperation and there is a good alliance...with the government and we share the same objectives.”
Eni has already discovered a gas deposit southwest of Cyprus. Descalzi said an appraisal well will need to be drilled to determine the deposit’s size.
He said Eni won’t stop its search for gas in the areas where it has received a license to drill, despite Turkey’s opposition to it.
Eni has received drilling licenses in six areas, or blocks, south of Cyprus. In three of those blocks, it has joined with South Korean company Kogas and in two it has partnered up with France’s Total.
In February, Turkish warships blocked a drillship from reaching a target southeast of Cyprus where Eni was scheduled to drill.
Turkey strongly opposes the gas search because it sees it as a “unilateral” action by the ethnically split island’s Greek Cypriots that ignores the rights of breakaway Turkish Cypriots to the island’s mineral wealth.
Cyprus was divided in 1974 when Turkey invaded after a coup by supporters of union with Greece.
The Cypriot government says the gas search is its sovereign right and that Turkish Cypriots will get their fair share of any potential proceeds after reunification.
Cyprus Energy Minister Yiorgos Lakkotrypis said ExxonMobil and partners Qatar Petroleum are due to carry out exploratory drilling in the second half of this year.
A deposit discovered by Texas-based Noble Energy in 2011 is estimated to contain more than 4 trillion cubic feet of gas.


OECD warns of global economic slowdown

Updated 21 November 2018
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OECD warns of global economic slowdown

  • ‘We urge policy-makers to help restore confidence in the international rules-based trading system’
  • Trade tensions have already shaved 0.1-0.2 percentage points off global GDP this year

PARIS: The global economy has peaked and faces a slowdown driven by international trade tensions and tighter monetary conditions, the Organization for Economic Cooperation and Development warned Wednesday.
The OECD, which groups the top developed economies, said it had trimmed its growth forecast for 2019 to 3.5 percent from the previous 3.7 percent.
The 2018 estimate was left unchanged at 3.7 percent.
For 2020, the global economy should grow 3.5 percent, it said in its latest Economic Outlook report.
“The shakier outlook in 2019 reflects deteriorating prospects, principally in emerging markets such as Turkey, Argentina and Brazil,” it said.
“The further slowdown in 2020 is more a reflection of developments in advanced economies as slower trade and lower fiscal and monetary support take their toll.”
OECD chief Angel Gurria highlighted problems caused by trade conflicts and political uncertainty — an apparent reference to US President Donald Trump’s stand-off with China which has roiled the markets.
“We urge policy-makers to help restore confidence in the international rules-based trading system,” Gurria said in a statement.
Trade tensions have already shaved 0.1-0.2 percentage points off global GDP this year, the Economic Outlook report said.
If Washington were to hike tariffs to 25 percent on all Chinese imports — as Trump has threatened to do — world economic growth could fall to close to three percent in 2020.
Growth rates would drop by an estimated 0.8 percent in the US and by 0.6 percent in China, it added.
For the moment, the OECD puts US economic growth at 2.9 percent this year and 2.7 percent in 2019, unchanged from previous estimates, but trimmed China by 0.1 percentage point each to 6.6 percent and 6.3 percent.
It warned that “a much sharper slowdown in Chinese growth would damage global growth significantly, particularly if it were to hit financial market confidence.”
Laurence Boone, OECD Chief Economist, said “There are few indications at present that the slowdown will be more severe than projected. But the risks are high enough to raise the alarm and prepare for any storms ahead.”