France’s Total boosts Cypriot gas plan as it eyes Iran exit

In this file photo taken on Oct.12, 2016, the logo of French oil giant Total SA is pictured at company headquarters in La Defense business district, outside Paris. (AP/Michel Euler)
Updated 21 May 2018

France’s Total boosts Cypriot gas plan as it eyes Iran exit

  • French energy company Total says it is looking to expand its search for natural gas off Cyprus’ south coast
  • Total is partners with Eni to search for oil and gas in two other areas off Cyprus

NICOSIA: French energy company Total says it is looking to expand its search for natural gas off Cyprus’ south coast and seeks to secure another exploratory drilling license, days after warning it could exit Iran over renewed US sanctions there.
Stephane Michel, Total’s Middle East exploration chief, said Monday that the company has applied for a license to search for hydrocarbons in Block 8, an area south of Cyprus where Italian company Eni is already licensed to carry out exploratory drilling.
Total is partners with Eni to search for oil and gas in two other areas off Cyprus. In one of the two, Eni said in February it has discovered a “promising” gas deposit with similar geological features as that of another discovery in Egyptian waters it described as the largest ever in the Mediterranean.
Cyprus Energy Minister Yiorgos Lakkotrypis called Total’s move an “important development” that expands the company’s exploration footprint off Cyprus.
Lakkotrypis said what gives the move added weight is the fact that Total’s interest comes three months after Turkish warships blocked a drillship from carrying out exploratory drilling by Eni in Block 3, an area southeast of Cyprus.
“After all that happened in Block 3, we see one of the most important partners of the Cyprus Republic wanting to expand its presence inside the Exclusive Economic Zone, especially in an area like Block 8 which is still unexplored.”
Turkey opposes what it calls a “unilateral” gas search by the ethnically divided island’s Greek Cypriot-run government, insisting that it flouts the rights of breakaway Turkish Cypriots to natural resources. Only Turkey recognizes a Turkish Cypriot declaration of independence and claims parts of exploration areas south of Cyprus which it says fall within its continental shelf.
The Cyprus government says any potential gas proceeds will be shared equitably with Turkish Cypriots after an accord reunifying the island is reached.
A deposit discovered off Cyprus by Texas-based Noble Energy in 2011 is estimated to contain around 4.5 trillion cubic feet of gas.
Total’s move also comes just days after it said it would have to withdraw multi-billion-dollar project in Iran unless it is granted a waiver by US authorities. The group said it cannot afford to be exposed to US sanctions, including the loss of financing by American banks.


Investors, scientists urge IEA to take bolder climate stance

Updated 30 May 2020

Investors, scientists urge IEA to take bolder climate stance

  • The energy agency’s head is under pressure to align its policies with the 2015 Paris accord goals

LONDON: Fatih Birol, the head of the International Energy Agency (IEA), faced renewed calls to take a bolder stance on climate change on Friday from investors concerned the organization’s reports enable damaging levels of investment in fossil fuels.

In an open letter, investor groups said an IEA report on options for green economic recoveries from the coronavirus pandemic, due out in June, should be aligned with the 2015 Paris accord goal of capping the rise in global temperatures at 1.5C.

The more than 60 signatories included the Institutional Investors Group on Climate Change, whose members have €30 trillion ($33.42 trillion) of assets under management, scientists and advocacy group Oil Change International.

“Bold, not incremental, action is required,” the letter said.

The Paris-based IEA said it appreciated feedback and would bear the letter’s suggestions in mind. It also said it had been recognized for leading calls on governments to put clean energy at the heart of their economic stimulus packages.

“We have backed up that call with a wide range of analysis, policy recommendations and high-level events with government ministers, CEOs, leading investors and thought leaders,” the IEA said.

Birol has faced mounting pressure in the past year from critics who say oil, gas and coal companies use the IEA’s flagship World Energy Outlook (WEO) annual report to justify further investment — undermining the Paris goals.

Birol has dismissed the criticism, saying the WEO helps governments understand the potential climate implications of their energy policies, and downplaying its influence on investment decisions.

FASTFACT

1.5°C

The 2015 Paris accord aims to cap the rise in global temperatures at 1.5C.

But campaigners want Birol to overhaul the WEO to chart a more reliable 1.5C path. The world is on track for more than double that level of heating, which would render the planet increasingly uninhabitable, scientists say.

The joint letter followed similar demands last year, and was published by Mission 2020, an initiative backed by former UN climate chief Christiana Figueres.