Transcript Research and Technology Development

Effective Management of Cyprus’s Gas Reserves –
Towards the Cyprus of Tomorrow
Professor Toula Onoufriou
Vide Rector for Academic Affairs
Department of Civil Engineering and Geomatics
Cyprus University of Technology
and
Chairwoman of The Cyprus Hydrocabons Company
3ο Ενεργειακό Συμπόσιο, Κύπρος 2014
Η Συμβολή της Κύπρου στη Νέα Ευρωπαϊκή Ενεργειακή Στρατηγική
1
Introduction – Hydrocarbon Discoveries in Cyprus and
Current Status
• Initial gas discovery offshore in
Dec 2011 in Block 12 by Noble
Energy, estimated around 4
trillion cubic feet, further
confirmatory drilling
• ENI/KOGAS have blocks 2,3,9
seismic surveys, planning
exploration drilling to start in
2014
• TOTAL have blocks 10,11,
seismic surveys, plannng
exploration drilling 2015
• There are also indications for oil
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Significant Opportunity for Cyprus to
Reposition Itself
The discovery of natural gas offshore Cyprus coupled with other
discoveries in the region is
• a significant development for the island and the region
• in a time of financial and economic crisis
If the right policies and effective management are put in place
• Cyprus’s energy resources can help the country
• to emerge from the economic crisis stronger
Cyprus can emerge as an advance economy and knowledge society by
• Capitalizing on its strengths
• Modernizing existing key areas of the economy
• Investing in new strategic areas
• Forming strategic alliances to achieve these long term objectives
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If we Look at Cyprus
• Cyprus has a strategic location in an energy producing region
• A European country operating under EU law at the junction of
three continents
• These new prospects create the opportunity for Cyprus to be
established as an Energy Centre
• And together with Israel and possibly other energy producing
countries in the region it can contribute to the EU energy security
• These aspects can provide incentives for the EU, the US and other
countries to support the hydrocarbon developments in Cyprus
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A Multifaceted Strategy and Effective Management at
Many Different Levels is Required
• To capitalize on this tremendous opportunity for our
country
• In order to achieve these objectives
• And raise the country to another level through a
sustainable development and growth strategy
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5
Key elements of
Management Strategy
Effective Management of Cyprus’s Gas Reserves
Towards the Cyprus of Tomorrow
Manage Findings
and
Developments
•
•
•
Discoveries so
far
Further
licensing
Exploration
and
production
Develop the Right
Business
Environment
•
•
•
•
•
Regulatory
regime
National Oil
Company
Export
infrastructure
Interim gas
supply
Infrastructure
for domestic
gas distribution
Sustainable
Economic
Growth
Strategies and
Policies
•
•
•
Stimulate
internal gas
market
Energy strategy
integrating
renewables
Safeguard
against
Environmental
Disasters
•
•
•
Investment Fund
Sustainable
Development of
Cyprus Economy
Human Capital
Development
Strategic International Alliances
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Key Elements of the Management Process
• Regulatory regime for governance of upstream and downstream
operations
• Cyprus Hydrocarbons Company
• Proceed with the infrastructure developments to support these
activities
Important to complete these process learning from best international
practice
This should build confidence with interested international investors
and attract high caliber companies to operate in Cyprus
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Export Infrastructure to Support Export Activity of
Natural Gas
• Gas supply will largely exceed domestic
demand, Cyprus is developing an export
strategy
• This is likely to involve liquefied natural gas
(LNG) facilities rather than pipelines or
electricity cables, given
• technical and geographical constraints,
• cost considerations,
• and the need for flexibility in the volumes
of gas processed and transported and in
reaching international markets
• Expandable LNG plant, tolling system, offering third party access
An LNG pant will be of strategic importance to Cyprus towards
establishing as a Regional Energy Hub
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Interim Solution for Gas Supply
Cyprus also needs to find an Interim solution for gas
supply until Cypriot gas comes on stream
• For guaranteeing the country’s fuel and power
requirements and reduce prices
• By importing natural gas for domestic use until gas
from Block 12 arrives on the island
• This is currently under examination
All options need to be assessed to arrive at a viable
solution
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Environmental Impact – Safeguard Against Environmental
Disasters in the Region
• Most important element - The quality in all our operations
• Best international practice to be followed in all our operations
• Establish a regulatory framework to monitor and oversee the work
of the companies to ensure that these best practices are followed
• Work with major international companies who follow best practice
• Training of our staff responsible for various aspects of
developments to high standards
• Establish collaborations and procedures which deal with accidents
in case these occur in order to minimize any catastrophic effects
• Collaborations with other countries in the area e.g. Israel
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Developing an Investment Fund
• Learn from successful examples form oil producing companies
like Norway and avoid mistakes failures of the past
• This needs to be managed independently from current
government policies
• Invest wisely to achieve the short and long term benefits and
objectives
• Rather than current budget support or plugging holes in the
economy
• Think strategic and long term
• Learn from other successful experiences e.g. long term
investment in research and technology development in Norway
and currently Brazil
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11
Sustainable Growth of Cyprus Economy
If we look at the Cyprus’s economy today this is
limited
• To tourism
• and business/ financial services
The potential revenues from the hydrocarbon
explorations
• Need to be used wisely to bring about many
• short and long term and sustainable benefits for
the country’s economy
This will need to include investment in:
• Improving infrastructure
• Public services
• Industrial competitiveness
• Modernising and strengthening key areas of the economy
• And building new strategic area
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Modernizing key Areas of the Economy
Strengthening existing areas such as
• Tourism
• Business
• Shipping
• Medical services
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Building new strategic areas
Build new strategic areas such
as
• Education and training
• Research and technology
development
Establishing Cyprus as an
education, training, research
and technology development
center for the region
Research and Technology
Development
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Research, Innovation and Entrepreneurship
Framework
Presentation of the National Committee for Research Innovation and
Technology Development Proposals for a
“New National Framework for Research Innovation
and Entrepreneurship”
To the President and the Government of Cyprus
26 March 2014
Research and Technology
Development
Presidential Palace
Next Stage - IMPELEMENTATION
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Building new strategic areas
Also tackling new areas of strategic
importance for the future for the country,
the region and internationally
These may include areas such as:
• Conventional energy and renewables
• Water shortage
• Climate change
• Energy efficient buildings
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Developing the Human Capital
Key Element to this Developments and their
Success is Developing the Human Capital
• A lot of these developments can be
developed utilizing the significant human
capital of highly educated workforce based
on a strong culture for education in Cyprus
• A workforce that is currently underutilized in
Cyprus
• That can be channeled in these areas so that the country can emerge
as an advance economy and
• A knowledge society with strong capabilities in education, training,
research and technology development for the benefit of Cyprus, the
EU and the region
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This Opens up Many Opportunities for
International Collaborations
With leading centers in Europe, the US, Israel and others
• Such as academic, research, industry organisations
• To bring expertise in Cyprus to jointly build these areas
for the future for mutual benefit
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Developing the Human
Capital Potential
Training objectives
• Training a new generation of young
professionals and entrepreneurs who will have
the knowledge and skills to work and thrive in
this new environment
• Training the staff that will man the various
government and other bodies that will support
this industry (National Oil Company, Regulatory
Bodies, Ministries etc)
• Train skilled workers to support the various
operations offshore and onshore related to the
hydrocarbon industry (e.g. major oil companies,
LNG plant, specialized and other support
services etc)
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Developing the Human Capital Potential
Combination of actions required
• Training in Cyprus Universities, Colleges etc
• Training abroad, establishing a number of scholarships in key
areas to study at top universities overseas
• Attracting some key experienced people from abroad to come and
work in Cyprus (Cypriots and others)
• Select the high caliber young and more experienced staff to
benefit from internships with major international
companies/universities abroad
• Working with overseas universities and training centres to develop
the education and training capabilities in Cyprus
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Need to Have an Outward Looking Policy with
Strategic International Alliances
Strategic alliances at various levels government, industry,
universities etc to achieve the best in terms of:
• National security
• Environmental safety
• Joint infrastructure collaboration
• Human capital development
• Education and training
• Research and technology
development
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Political Problem in Cyprus
It is hoped that in parallel with these
developments
• These prospects can form the catalyst for a
solution to the political problem
• So that all communities in Cyprus can benefit
from these resources
• Also contribute to political stability in the
region
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Key elements of
Management Strategy
Effective Management of Cyprus’s Gas Reserves
Towards the Cyprus of Tomorrow
Manage Findings
and
Developments
•
•
•
Discoveries so
far
Further
licensing
Exploration
and
production
Develop the Right
Business
Environment
•
•
•
•
•
Regulatory
regime
National Oil
Company
Export
infrastructure
Interim gas
supply
Infrastructure
for domestic
gas distribution
Sustainable
Economic
Growth
Strategies and
Policies
•
•
•
Stimulate
internal gas
market
Energy strategy
integrating
renewables
Safeguard
against
Environmental
Disasters
•
•
•
Investment Fund
Sustainable
Development of
Cyprus Economy
Human Capital
Development
Strategic International Alliances
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By Adopting the Right Strategies
• Cyprus can emerge from the current crisis with a more
diversified economy built on its strengths
• With a strong oil and gas industry and related services
• And building new capabilities and strengths in other
strategic areas for the economy
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Cyprus Can Develop Into an Energy
Hub
Both in terms of
• Producing, processing and exporting gas to Europe
thus contributing significantly to Europe’s energy
security
• And also becoming a centre for education, training,
research and technology development serving the
region and Europe in key strategic technological areas
for the future
Such developments will be of significant benefit for the
country, the region and Europe
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Thank you
Thank you
Professor Toula Onoufriou
Vide Rector for Academic Affairs
Department of Civil Engineering and Geomatics
Cyprus University of Technology
and
Chairwoman of The Cyprus Hydrocabons Company
3ο Ενεργειακό Συμπόσιο, Κύπρος 2014
Η Συμβολή της Κύπρου στη Νέα Ευρωπαϊκή Ενεργειακή Στρατηγική
26