INSIGHTS AND NEWS
News, expert opinions and other updates
News, expert opinions and other updates
On behalf of the entire team at AP GlobalEnergy, we would like to thank our clients and candidates for their continued support and trust in our services. Please note our offices will be closed from 13:00 on Friday 23 December till Tuesday, 2 January, 2017. We will resume normal working hours on 3 January, 2017. You can still apply for our live vacancies or send us your CV.
Wish you a very Merry Christmas and a happy and prosperous New Year. We look forward to serving you in 2017.
AP Group, a world-leading offshore recruitment firm established in Guernsey in 1990, is pleased to announce a new partnership with the Commonwealth Trade Initiative. The partnership is to promote business investment throughout the 53 Commonwealth countries. This alliance brings together the Commonwealth Trade’s cloud based trading and collaboration platform that fosters networking opportunities between organisations established and those considering a move into Commonwealth markets with AP Group’s 25 years of expertise in recruitment consultancy.
Through the partnership, AP Group and its specialist divisions aim to help organisations entering the Commonwealth markets with bespoke and comprehensive HR/staffing solutions to tackle recruitment challenges in the established and emerging economies. With the tremendous growth in the commonwealth market, attracting and retaining high quality talent for specialised roles has become a challenge. Most nations are also grappling with a lack of leadership, specialist skilled talent and/or management/executive level professionals. Dealing across a range of industrial sectors, including wealth management, trust, family office, accountancy, legal sectors, finance, IT, Telecoms, oil and gas, and temporary placements, AP Group’s dedicated team of specialised consultants help overcome human capital challenges in highly-localised markets through unrivalled talent sourcing expertise and market intelligence. Its executive search division AP Executive is an acknowledged leader in mid to senior management and C-suite level recruitment for wealth management across commonwealth countries and globally.
The innovative communication platform, which will be accessed by AP Group’s global recruiters, allows AP Group to engage with new customers and prospective partners, throughout the Commonwealth, as well as gather strategic data-driven market intelligencethrough data analytics and data visualisation. The AP Group has recruitment divisions servicing businesses in the wealth management, legal and accountancy, IT, Oil & Gas, Construction and Commercial sectors.
Gina Le Prevost, CEO and Founder of AP Group, commented: “This fantastic new initiative by the UK Government, is a massive opportunity for AP Group to deliver bespoke professional recruitment services to new and existing companies. We feel privileged and flattered to have been chosen as a commercial partner and are very much looking forward to dealing companies across the Commonwealth to provide our expert recruitment services where needed. Our offices are strategically placed across the globe to be able to deal with this exciting undertaking. We are looking forward to being of service!”
AP Group also offers advisory services in order to equip companies with up-to-date regional market knowledge, as well as identify specific investment opportunities in emerging economies. To ensure smooth and efficient global expansion, AP Group also provides selection of HR services to its clients, including salary guides, payroll services and HR administration in selected locations.
With extensive international recruitment experience and an enviable candidate network, AP Group is uniquely placed to take care of all HR/Staffing needs, as well as offer advisory services relating to global expansion, relocation and immigration. Known for its efficient, confidential and reliable professional services, AP Group is the trusted recruitment partner of choice for many blue chip firms.
Ever since the massive hydrocarbon discovery in 2011, there has been no looking back for Cyprus. The small Mediterranean country has witnessed continuous growth in the oil and gas sector and attracted its fair share of international attention.
Cyprus’s enviable position as a financial and business hub was shaken when its economy received a severe setback during a series of banking crisis. However, the unexpected discovery of natural gas deposits within Cyprus’s Exclusive Economic Zone (EEZ) provided a major impetus for economic revival.
Earlier, Cyprus had relied heavily on imported oil from neighbours to meet its energy requirements. But this unique discovery by a leading American company Nobel Energy has given a sense of optimism about the future and even offered Cyprus the opportunity to contemplate on exports.
Currently, Cyprus’s 15,000- square kilometre EEZ has 13 exploration blocks located to the south of the island. The rights of six of these blocks have been already awarded, which are believed to contain up to 40 trillion cubic feet of gas.
The licence of block 12 was given to Nobel Energy in 2008, whose exploratory drilling later led to the discovery of a natural gas field in 2011. In 2012, Nobel Energy announced the estimated resource range of block 12 to be between 5 to 8 Tcf, later revised to a range of 3.6 to 6 Tcf in 2013. Recently in November 2014, it was further revised upwards by 12%. In February 2013, 30% of Noble Energy's exploration stake in block 12 was transferred to Israeli drilling partners Delek and Avner Oil.
Italian and South Korean consortium ENI-KOGAS holds the licences for blocks 2, 3 and 9, while French energy giant Total E&P has for blocks 10 and 11.
In September 2014, the Sapiem 10000 drillship started exploratory drilling on behalf of Eni and KOGAS at the offshore Onasagoras field, which comes under block 9. It has not yet been successful in locating “any concentration of exploitable hydrocarbons”, and plans to move on to the Amathusa field also in block 9. The consortium has also asked for more time from the government to carry out exploratory works in block two and three.
In January, following geological tests, Total announced that it had failed to locate any targets in the licensed blocks for test drilling. However, later in March, Total signed an agreement with the Cyprus government for further exploration works in block 11.
Of these, Nobel Energy has had the most success in locating tangible reserves in block 12, which is fittingly named Aphrodite. Government officials believe that there might be 30 to 40 Tcf of natural gas yet to be discovered in this block.
Cyprus government plans to announce the 3rd and 4th Offshore Licensing Round for the remaining blocks that are 5, 6, 7, 8, and 13.
The oil and gas industry has diversified the existing sources of revenue for Cyprus and holds the economic future of the country.
The recent declaration of Aphrodite gas field as “commercially viable” by Nobel, Derek and Avner has added a new milestone to Cyprus’s exploration and exploitation of natural reserves. It has opened up avenues for monetization through exports and supplies to Cyprus for domestic electricity generation. As Cyprus’s domestic energy consumption is meagre, export is likely to generate a significant portion of the revenue.
Over the years, there has been an influx of foreign companies who have come to explore the region or establish ties with the oil and gas industry in Cyprus. For better operational performance, other professional sectors also play a crucial role in strengthening the oil and gas industry; thus they contribute to the further economic growth of the country.
Cyprus’s EEZ has been a boon for the country, drawing in revenue from different corners. Cyprus has received 23 million Euros for seismic surveys, 150 million as contractual bonus from ENI-KOGAS and 24 million Euros from Total.
In addition, Cyprus’s strategic geographical location at the crossroads of Europe, Asia and Africa makes it ideally placed to serve as the primary energy supplier to the entire Eastern Mediterranean region.
Cyprus has many other things to its favour such as a stable government, robust regulatory framework and friendly ties with neighbours; thus, it attracts energy companies by providing a stable and secure base for their operations.
It might be the early stages of Cyprus’s Oil and Gas industry, but this holds immense opportunities for young Cypriots. Besides generating revenue from the export of hydrocarbon, jobs and infrastructure projects linked with this sector enhance economic growth.
“Currently the global energy firms bring senior engineers and professionals from abroad putting local hires on the backburner, and as per the latest updates of this summer, it might take some time before the local market opens,” said Elena Boudourakis, Recruitment Consultant, AP GlobalEnergy.
“We are continuously monitoring for any developments and are in touch with the big players who are actively working in Oil & Gas in Cyprus. By registering on AP GlobalEnergy website you will be the first to know once a local recruitment campaign has kicked-off.”
With more and more foreign companies making a beeline to capitalize on this newly found treasure, Cyprus prepares for an exciting chapter in its economic history.
Ties with neighbours
The hydrocarbon reserves have another potential benefit. The financial reward is going to benefit the whole of Cyprus, both the Greek and Turkish side. In an interview to CNN, the Republic of Cyprus' president Nicos Anastasiades, expressed his belief that “this rich supply of energy could help unite the island”.
"The benefit out of the exploitation of the wealth of energy is going to the interest of all the people of Cyprus whether they are Greek or Turkish Cypriots," Anastasiades told CNN.
Thanks to the hydrocarbon reserves, bilateral ties with other neighbouring countries also seem promising.
Israel and Cyprus share a warm relationship with strong collaboration on the cultural, military and political fronts. But it is the joint exploitation of the natural gas reserves that has cemented a stronger bond between the two countries.
In a recent tête-à-tête meeting, the leaders of the two countries discussed natural reserves, among other key topics.
Later, in a press conference Israel president Netanyahu said that by “cooperating with each other” they can exploit the natural reserves more easily and can “market it better”. He also stressed that this would benefit the people of both the countries.
Two giant Israeli energy firms Delek and Avner already possess a 30 percent stake in the Aphrodite venture. Delek Group is also seeking to collaborate with Cyprus on the exploration of natural gas near the Leviathan gas field, which is off the coast of Israel.
Besides, Cyprus, Israel and Greece have come together to form what is being called as the Energy Triangle. It refers to the joint exploitation of natural gas reserves. Under the Cairo Declaration treaty signed in November 2014, pipeline links are proposed to be established from the Aphrodite gas field and the Leviathan gas field to a LPG plant in the Vasilikos Power Station by 2019. This will facilitate transportation of gas between these three countries, and later may be extended to Europe.
In February 2015, Cyprus government signed a MOU with Egypt for exploring the possibility of transferring gas from the Aphrodite field to Egypt via underwater pipelines.
The discovery of hydrocarbon reserves may have been unexpected, but it has opened up a treasure chest for Cyprus to relish for years to come.
According to reports, there is a possibility that Cyprus could be sitting on 60 trillion cubic feet of gas. Its value for a small country like Cyprus can be estimated from the fact that the entire Europe consumes 18 Tcf of gas a year. It is most likely that a significant portion of energy will be exported, drawing revenue and fostering growth.
Growth in the oil and gas industry has a potential to create a diverse range of career options in Cyprus, including opportunities in pipeline, drilling, petrochemical, LNG, subsea, offshore, onshore, geotechnical, transportation & storage and refinery, shipping, environmental and renewable energy sectors. This will reduce unemployment and give a significant boost to the economy.
Cyprus government continues to invest in energy infrastructure projects, along with forging business ties with neighbouring countries to capitalize on exploration and exploitation of the natural reserves.
With strategic approach, planned infrastructure and robust regulatory measures, Cyprus has the potential to emerge as the energy hub of the eastern European region.
The Island of Aphrodite
An island situated in the Eastern Mediterranean and a crossroad point of three major continents Europe, Asia and Africa, Cyprus is the third largest Island in Europe with an area of 9251. Sq km and a population of approximately 840,000. A popular tourist destination, Cyprus enjoys a sub-tropical climate, with long summers and very mild winters. Cyprus has been a member state of the European Union since May 2004 and is a former British Colony. Cyprus has an adaptable and free market economy with its main economic activities being; Banking, Forex and Trading, Tourism, Marine & Shipping, Property and most recently Energy.
The key cities in Cyprus are Nicosia, the capital of the Island, Limassol, Larnaca and Paphos.
Nicosia is the financial and corporate heart of Cyprus and home to international banks, professional services organisations, law firms and most recently oil and gas operators and contractors. Nicosia is an elegant and modern city that is rich in history, yet boasting the latest fashion trends with a truly European cafe culture.
Limassol always has been the shipping and marine hub of the Island, with the port of Limassol being one of the busiest in the Mediterranean. The city blends cosmopolitan shops, history, high profile international organisations, all set against the beauty of the Mediterranean coast.
Larnaca is home to the island's second largest commercial port and Larnaca International Airport, making it an important part of Cyprus, it is the island's third largest City. It boasts beaches, historical features, architecture and culture.
Paphos is home of the legendary birth place of the Goddess Aphrodite. Rich in history Paphos is listed in UNESCO's list of world heritage sites. Luxury, tradition, beauty, history and culture is why Paphos is the gem of Western Cyprus.
The journey so far
After three years of exploration activity, in 2011, Noble Energy, a leading US based energy organisation, announced to the world that a natural gas field discovery had been made offshore of Cyprus. Today Noble Energy, Delek, Avner Oil, Total and Eni-Kogas are the energy companies at the forefront of the hydrocarbon activities in Cyprus and the Eastern Mediterranean.
With substantial oil and gas resources in the region, a notable part falls within the Cyprus Exclusive Economic Zone. At present 13 exploration blocks have been set out by the Republic of Cyprus, south of the island. There are still undiscovered hydrocarbon resources, it is believed, at the western part of Cyprus.
The first licensing round ended in 2007 with Noble Energy being awarded the first exploration licence and in 2011 they announced a natural gas field discovery offshore of Cyprus. The second licensing round commenced in 2012, where companies from 15 countries submitted their bids for the 12 blocks in the Cyprus Exclusive Economic Zone. In 2013, Cyprus awarded exploration licences for blocks 2, 3 and 9 to Eni-Kogas and received €150m in contractual bonuses.
Total, one of the "super major" oil and gas corporations globally, were then granted licences for the exploration of blocks 10 and 11 in February 2013, which saw the Republic of Cyprus receive a contractual bonus of €24m.
This year we have seen 30% of Noble Energy's exploration rights in block 12 transferred to drilling partners Delek and Avner Oil. The Italian-Korean consortium Eni-KOGAS and the Cypriot government will start bidding talks for offshore blocks 5 and 6 with the view to the consortium being awarded exploration concessions.
So far, to date, Noble Energy estimates gross resources of the natural gas field in the range of 3.6 Tcf of natural gas to 6Tcf with a median of 5Tcf.
It is without a doubt, that there are significant oil and gas resources in the Eastern Mediterranean, including the Cyprus Exclusive Economic Zone, both discovered and undiscovered. How Cyprus embraces this unique opportunity it is presented with is crucial. The signs are very positive from both the government of The Republic of Cyprus and the energy companies involved. There appears to be a cohesive understanding that time is of the essence. The importance of the development and growth of the emerging energy sector in Cyprus cannot be underestimated as it will act to strengthen and diversify the Cypriot economy.
We have seen Energy ministers for Cyprus and Lebanon come together to discuss future hydrocarbon activities with the view to negotiating a production sharing agreement. Cyprus has already signed agreements with Israel, Egypt and Palestine, setting out future activities and border agreements. Most recently we see the Energy Minister for the Republic of Cyprus announcing the possibility of a temporary casino being built in the integrated resort and being awarded to the winning energy company of a future license. This provides a more immediate income for the country whilst making bidding for the exploration licenses more enticing to the energy company.
All of this activity shows the commitment, focus and determination of The Republic of Cyprus to ensure that the country reaps the full rewards and benefits of this rising and promising new sector. The future for Cyprus and its people is bright and also offers hope and inspiration to young Cypriots for diverse future career prospects.
AP Global Energy
AP Global Energy is firmly part of this new and emerging chapter in Cyprus. AP Global Energy is part of the AP Group, which was formed in 1990 and is a leading global group of offshore recruitment consultancies, with offices in Nicosia, Limassol, London, Geneva, Zurich, Vietnam, Guernsey and Jersey, which operate internationally in over 55 jurisdictions.
AP Global Energy is a dedicated Oil & Energy consultancy specialising in the recruitment of high quality Oil and Energy professionals for our client's contract and permanent requirements covering the E&P, Transportation & Storage and Refinery sectors. AP Global Energy provides recruitment solutions covering; Petrochemical, LNG, Subsea, Offshore, Onshore, Geotechnical, Environmental and Renewable Energy sectors.
Our specialist areas of recruitment include;