Cyprus to open fresh peace talks

Financial Times     Andreas Hadjipapas, Dan Dombey, Kerin Hope

The leaders of the Greek and Turkish communities in Cyprus are set to announce a fresh initiative to reunify the Mediterranean island following months of quiet diplomacy by the US aimed at achieving a broader reconciliation involving Israel, Turkey and Cyprus.

Nicos Anastasiades, the Greek Cypriot leader, and Dervis Eroglou, his Turkish Cypriot counterpart, will on Tuesday make a joint commitment to resuming negotiations “in a results-oriented manner” hoping to wrap up a peace settlement as soon as possible, according to the text of a joint declaration leaked to Cypriot media at the weekend.

The US intervention ended a five-month stalemate, typical of previous efforts to reinvigorate UN sponsored peace talks, over details of turning the ethnically divided island into a federation. This would be formed of two constituent states in which Greek and Turkish Cypriots would continue to run their own domestic affairs.

“The two sides will seek to create a positive atmosphere to ensure the talks succeed. They commit to avoiding blame games or other negative comments on the negotiations,” the statement said.

Relations between the two communities have been sour since 2004 when the Greek Cypriots rejected the Annan plan – named after the former UN secretary-general Kofi Annan – in a referendum. Mr Anastasiades was the only Greek Cypriot leader to back the plan. The result meant that the smaller Turkish Cypriot community living on the north of the island was blocked from EU membership, even though it backed reunification in a separate vote.

With the two biggest Greek Cypriot political parties backing the new initiative, there was optimism in Nicosia that an end to the island’s 40-year division could be within reach.

Recent discoveries of large offshore gas deposits between Cyprus and Israel that could be channelled to European markets by a pipeline through Turkey have fuelled hopes of a settlement.

Cyprus and Egypt sign unitisation deal on the joint exploitation

 Cyprus Mail

Cyprus and Egypt yesterday signed a unitisation agreement on the joint exploitation of hydrocarbon reserves, on the median line between the two countries’ respective exclusive economic zones (EEZ).

The seminal agreement paves the way for commercial interests to take advantage of any hydrocarbon reserves found in areas that could cross either side of the dividing line between the two countries’ EEZ.

In total, three bilateral agreements were signed yesterday during President Nicos Anastasiades’ two-day official visit to Cairo, marking an upturn in relations between Cyprus and the interim government of Egypt.

Foreign Minister Ioannis Kasoulides signed a Revised Aviation Agreement between Egypt and Cyprus while Energy Minister Giorgos Lakkotrypis signed a framework agreement for the Development of Cross-Median Line Hydrocarbon Resources.

A cooperation agreement was also signed between the Cyprus Institute of Neurology and Genetics and the Children’s Cancer Hospital of Cairo.

The unitisation agreement is a final agreement between two governments, and the first one signed between Cyprus and one of its neighbours, with significant implications for the development of the industry in the Eastern Mediterranean.

US urges talks for energy in East Med

Hürriyet Daily News

The United States has called for continued dialogue between Turkey and the relevant parties in exploring energy resources both in the Eastern Mediterranean as well as in Iraq.

Carlos Pascual, the U.S. special envoy, called for dialog among parties on the potential resources that are yet to be explored in the Eastern Mediterranean, at the Atlantic Council Summit in Istanbul.
Discoveries of significant amounts of gas around Cyprus have brought with them political problems, as Turkey raised objections about exploration and ownership rights before a political settlement was reached on the divided island. Strains in Israeli–Turkish relations further complicated the transport of gas to a European market via Turkey, which experts agree will be the most commercial way.

It is too early to predict how Eastern Mediterranean gas will reach international markets according to Pascual, who said conversations between countries and companies would be critical to find the most commercially viable and politically acceptable solution.

Meanwhile Leonardo Bellodi, senior vice-president for public Affairs of ENİ said “things looked improved compared to a year ago,” when asked by the Hürriyet Daily News. Turkey had warned companies last year not to go ahead with exploration works in the Mediterranean or face consequences.

Greek Cyprus to auction gas exploration blocks

AFP

Greek Cyprus has entered talks with Italian-South Korean venture ENI-KOGAS on licensing two offshore exploration blocks, state media said, as the recession-hit island steps up its search for gas reserves.

The cabinet reportedly gave the green light for the negotiations on blocks 5 and 6 to begin, with a December 2 deadline ready to be extended. Government spokesman Victoras Papadopoulos confirmed ministers had discussed the issue but told reporters there was “nothing to announce publicly.”

Earlier this year, ENI-KOGAS secured permits to exploit possible hydrocarbon deposits in blocks 2, 3 and 9. The venture plans to start drilling in the third quarter of 2014.

Israel set to become major gas exporter

The Financial Times   John Reed

The Tamar deepwater natural gas platform rises 290m from the seabed off Ashdod, in southern Israel, emerging above the waterline only for the last 50 metres or so.

 

The $3.5bn project is described by its investors Delek of Israel and Noble Energy of the US as the largest private sector infrastructure undertaking in Israel’s 65-year history. The gas from Tamar, which began sending its output onshore in late March, will contribute about a percentage point of the country’s gross domestic product this year.

Israel is on the threshold of becoming a major energy power in the Middle East – with potentially game-changing consequences for geopolitics and economic relations in a volatile region – after a court decision unlocked the path to exports.

 

Executives at Delek and Noble told the Financial Times they are fast-tracking discussions on a range of export options for the much larger, still undeveloped Leviathan field, which lies about 30km to Tamar’s west, and holds an estimated 19tn cubic feet of gas – one of the industry’s biggest recent deepwater finds of its kind.

They are moving forward following a decision by Israel’s supreme court in late October to reject petitions brought by civil society groups and opposition politicians who questioned the right of Benjamin Netanyahu’s government to set aside 40 per cent of Israel’s gas windfall for exports without having consulted the Knesset, Israel’s legislature. 

Turkey's pipe dreams

Arabian Business       Lionel Mok

Turkey has continued to make the headlines in the Middle East’s oil and gas industry over the last several months due to a number of factors which include the growing divide between the Kurdistan Regional Government (KRG) and the Federal Government of Iraq (FGI); and the recent signing of the Trans-Adriatic Pipeiline (TAP) and Trans-Anatolian Pipelines (TANAP).

Despite its unremarkable national oil production industry that produces, on average, 50,000 barrels per day (bpd) from reserves that total approximately 270 million barrels of oil, the country has made itself critical to the world’s energy market, while also managing to satisfy growing domestic consumption of over 700,000 bpd.

Turkey owes its gravitational pull in the energy market to its physical geography. As the only landmass standing between the Middle East and Europe, and also the Black and Mediterranean Seas, Turkey is well positioned to become an energy hub and a transit point.

The country is in proximity to 71.8% of the world’s proven gas reserves and 72.7% of the world’s proven oil reserves. It neighbors Iran, Iraq the recently discovered Eastern Mediterranean reserves near Lebanon; and it is less than 250 kilometers away from the Caspian Sea, home of the world’s largest oil discovery in the last thirty years.

By 2004, the Turkish straits of the Bosphorus and the Dardanalles, had the capacity to transit 3.4 million barrels of oil to European markets every day. At the same time, a terminal on Turkey’s Mediterranean coast at Ceyhan, facilitates oil exports from northern Iraq via a pipeline from Kirkuk and from Azerbaijan through the Baku-Tbilisi-Ceyhan pipeline. The Kirkuk-Ceyhan pipeline is Turkey’s largest, with a capacity of 1.65 million bpd.

The planned TANAP will include a natural gas pipeline system running from the Georgia-Turkey border to the Turkey-Greece border, while the TAP, will transport the same natural gas from Greece via Albania and the Adriatic Sea to Italy and further to markets throughout Western Europe.

"Turkey may drill for oil and gas in Cyprus": Minister

Hurriyet Daily News

Turkey’s Barbaros Hayrettin Paşa seismic vessel, which has been conducting offshore oil and gas exploration in the eastern Mediterranean, could enter Cyprus’ exclusive economic zone in three weeks to continue exploration pending prime ministerial approval, Energy Minister Taner Yıldız has said.

“The Barbaros Hayrettin Paşa is drilling off the coast of the Mersin-İskenderun-Antalya region. It will work there, for three weeks more. Later, we will speak with Prime Minister [Recep Tayyip Erdoğan] as to whether it will enter Cyprus’ exclusive economic zone. If the prime minister approves, the vessel could enter to the north or south of Cyprus because it has both a technical and political dimension,” Yıldız told private broadcaster A Haber in an interview early today.

Yıldız also said they might buy a new vessel depending on the work load.

Turkey has strongly protested against Greek Cyprus’ energy exploration in the Mediterranean, branding the moves illegal and starting its own exploratory drilling off Turkish northern Cyprus. The Turkish government says all revenues obtained from the drilling operations off the coast of Cyprus should be distributed between Greek Cyprus and Turkish Cyprus and have frequently warned that Turkey would undertake unilateral drilling in the event of any failure to equitably share revenues.
Ankara has also said companies could be shut out of future Turkish energy investments if they become involved in Greek Cypriot energy exploration work.

Turkey decided in March to suspend energy projects with Italian giant Eni in retaliation for the company’s involvement in oil and gas drilling off the coast of Greek Cyprus.

Source: http://www.hurriyetdailynews.com/turkey-may-drill-for-oil-and-gas-in-cyprus-minister.aspx?pageID=238&nID=55114&NewsCatID=348

Interview with Dr. Charles Ellinas and Mr. Solon Kassinis, Cyprus National Hydrocarbons Company (KRETYK)

Karen Ayat*       Natural Gas Europe

Natural Gas Europe was pleased to have an opportunity to interview Dr. Charles Ellinas, Chairman of the Cyprus National Hydrocarbons Company (KRETYK) and Mr. Solon Kassinis, Vice President of KRETYK at the 2nd Annual Cypriot-Greek Oil & Gas 2013 Summit” organized by IRN in the southern coastal town of Limassol

How mighty is Aphrodite?

SK: Aphrodite'’s proven reserves are estimated at 7tcf. We are planning to have another verification well starting in June  We expect to find 10 tcf at least.

CE: There is a lot of gas already proven and we are certain there is a lot more to be discovered in the 6 blocks already awarded, probably 4 to 5 times as much as Aphrodite. 

How will future oil and gas production, once discoveries are confirmed, contribute in enhancing Cyprus'’ economy and reducing its energy bill? 

SK: Within the 13 blocks in Cyprus’ EEZ, we do envisage to have around 60 tcf. We rely on this gas given that Cyprus’ economy is now in a very bad shape.

CE: We expect that Cyprus will start construction in 2016 creating thousands of jobs as a result. The services and supplies industries will benefit as well as subcontractors. A liquefied natural gas terminal in Vassilikos will be ready to deliver natural gas to the Cypriot market by the end of 2018 reducing electricity prices by at least 50% (the price for electricity is very high in Cyprus), whereas by the end of 2019 Cyprus will be in a position to export liquefied natural gas. By 2025 Cyprus and the Levantine Basin will be able to produce 25 million tones of natural gas per year and cover 50% of the EU’s additional energy needs.

Interview with Dr. Theodore Tsakiris, Assistant Professor, Geopolitics of Hydrocarbons, University of Nicosia, Cyprus

Karen Ayat*       Natural Gas Europe

Interview with Dr. Theodore Tsakiris, Assistant Professor, Geopolitics of Hydrocarbons, University of Nicosia, Cyprus 

Natural Gas Europe was pleased to have an opportunity to interview Dr. Theodore Tsakiris, Assistant Professor, Geopolitics of Hydrocarbons, University of Nicosia, Cyprus, at the 2nd Annual Cypriot-Greek Oil & Gas 2013 Summit” organized by IRN in the southern coastal town of Limassol.
How realistic is the hoped-for resources boom in Cyprus?

What we have known since December 2011 is that Aphrodite contains a sizable volume of high quality natural gas between 5-9 tcf with a gross mean average of 7 tcf (trillion cubic feet). The appraisal or confirmatory drilling on Aphrodite, which will be completed by September 2013, will give us an accurate estimate of the exact size of the field, its extractability and its quality. There is a 50% probability that the size of the field is at 7 tcf, a 25% probability that it will be at 5 tcf and another 25% probability that it will be at 9 tcf.  In addition to Aphrodite Noble has recently announced plans to explore a second area within Block 12 were seismic data analysis indicates the existence of another promising play capable of containing 3-5 tcf. Exploration drilling will begin in this second Block 12 play over the first four months of 2014. The greatest challenge of course is ahead and relates to the results of the exploration programme set out for 2014-2016 by ENI/Kogas and Total. Cypriot authorities appear confident that the exploratory programme will result in discoveries even greater than Aphrodite.

How much gas is needed to justify the commercial viability of the Vassilikos LNG plant?

We need around 8-9tcf to justify the lengthy and costly project of building the Vassilikos LNG plant. If the appraisal drilling confirms that Aphrodite contains 7tcf it would also be marginally viable to proceed with the LNG terminal without the need for additional discoveries.

In the pipeline: an Israeli-Turkish reconciliation

Daniel Dombey       Finacial Times

An energy and diplomacy deal that would reshape the map of the eastern Mediterranean might be proceeding faster than many people think.

It is just a few weeks since, in a bid to revive frozen diplomatic ties, Israel apologised to Turkey for a deadly raid that left nine Turkish citizens dead. The process was still sufficiently shaky for US Secretary of State John Kerry to come to Istanbul last weekend to chivvy both sides to go all the way and exchange ambassadors.

There are plenty of potential slips on the way ahead: compensation has to be agreed; the fate of Turkish court cases against retired Israeli commanders has to be decided (at present, they are going ahead); and Ankara still has to pronounce itself satisfied with the lifting of restrictions on civilian goods to Gaza (relevant, because the flotilla stormed by Israeli Defence Forces in 2010 was seeking to break the Gaza blockade).

But it is becoming increasingly apparent that both governments are actively interested in sealing the tentative rapprochement with a deal under which gas-rich Israel would supply energy-hungry Turkey. Moreover, such considerations probably played a part in producing the reconciliation in the first place.

Israel eyes gas exports to neighbours

John Reed   Financial Times

A leading investor in Israel’s natural gas sector said initial talks were under way on exporting some of the country’s abundant offshore reserves to Turkey, Jordan, Egypt, and a proposed power plant in the West Bank.

Yossi Abu, chief executive of Delek Drilling, said the sector was poised to take part in a “new geopolitical opportunity” and was looking at possibilities to export gas via pipelines from offshore fields such as the big, unexploited Leviathan reserve to Israel’s regional neighbours and possibly – via Turkey – to Europe.
“There is a significant commercial basis to supply gas from Leviathan and other discoveries offshore Israel to Turkey, Jordan, the Palestinian Authority, and even Egypt,” Mr Abu told the Financial Times in an interview.

He added: “We have discussions – I cannot give you names – with potential customers in our region.”

Mr Abu’s remarks add weight to those from Israeli, Turkish and other government and private-sector figures recently, suggesting that talks on regional gas projects that would re-shape the Middle Eastern energy map are advancing quickly.

Israel apologised to Turkey last month for a fatal 2010 storming of a boat off Gaza, and the political rapprochement has raised the prospect of a thaw in trading relations between two of the Middle East’s biggest economies.

“We believe that there is a real opportunity to supply gas to the Turkish market, and maybe through the Turkish market to the European market,” Mr Abu said. “Also, there’s a real opportunity to supply gas to Jordan.”

Israel wants to carry Israeli gas to Turkey

Sevil Küçükkoşum         Hurriyet Daily News

Israel sees ‘Med-Streams’ in service of regional diplomacy

Building a pipeline that will carry Israeli gas to Turkey would enhance political normalization between two countries, Israeli envoy says, contrary to Turkish efforts to separate two processes

Transferring Israeli gas through Turkey to the international market is profitable for both Turkey and Israel and cooperation in the energy field could pave the way for resolving regional problems, a senior diplomat from the Jewish state said, as he apparently referred to probable normalization of bilateral relations between Turkey and Israel with the help of such cooperation at a bilateral level.

“We should start thinking at least about a set of Med-Streams, a set of pipelines and LNG that will enable us to exploit not only oil and gas, but also to create another political environment,” Ambassador Michael Lotem, special envoy for energy of the Israeli Foreign Ministry, said yesterday, referring to prospects of building of a pipeline from Israel to Turkey.

“Can we use energy; can we use gas, beyond the commercial value of it, in the service of politics, in the service of diplomacy?” Lotem asked in a speech delivered at the second and last day of the 12th Turkish International Oil & Gas Conference (TUROGE).

Noble Energy considers pipeline from Israel to Turkey

Reuters

Texas-based Noble Energy will double in size in the next five years, with a big boost coming from natural gas production in the eastern Mediterranean, its chief executive said on Thursday.

"We expect to double in size over the next five years. Double in size in terms of production, double in size in cash flow, double in size in terms of reserves," CEO Charles Davidson told reporters during a visit to Israel.

Noble is leading a number of consortia drilling for and producing gas off the Israeli and Cypriot shores, and it has already discovered an estimated 35 trillion cubic feet (tcf) of reserves over the past few years.

Israel's Tamar field, discovered by Noble in 2009, holds an estimated 10 tcf. It went online on March 30 and can meet the country's gas needs for decades.

The much larger Leviathan field, set to begin production around 2016, is mostly slated for exports.
The discoveries were a welcome surprise in Israel, which has relied heavily on energy imports. Analysts have said the deposits are ideally situated to serve both Europe and Asia.

Nobel, which had a 2012 market capitalisation of $17.6 billion, forecasts end-2013 total production to be 300 thousand barrels of oil equivalent per day (MBoe/d).

Exploring Potential Export Markets for Israeli Gas

Karen Ayat          Natural Gas Europe

Start of production at Tamar

Natural gas began flowing from the Tamar field off Israel's Mediterranean shores on Saturday 30 March 2013 producing 300 million cubic feet per day. When combined with the existing Mari-B volumes of 200 million cubic feet per day, the current daily sales are nearly 500 million cubic feet per day and expected to reach 700 million by the end of 2013. The Tamar field was discovered by Noble Energy in 2009 and was the largest deepwater natural gas discovery in the world in 2009 estimated at the time to contain 9 tcf of gas. Noble made a new estimation upping the gross resource estimate of Tamar to 10 trillion cubic feet (Tcf) as a result of development drilling and continued reservoir analysis and modeling. The updated estimate was confirmed by an independent assessment conducted by Netherland, Sewell & Associates, Inc. 

Previously discovered Mari-B

Mari-B was the first offshore natural gas field in the State of Israel discovered by Noble in March 2000. Noble started gas production from the Mari-B field in 2003. Despite its relatively small size (containing around 1 tcf of gas), the Mari-B field was not only a momentary relief for Israel but played a tremendous role in enabling Israel to shift from heavy fuel oils and coals to gas for its electricity production. Soon after, Israel began importing Egyptian Gas to supplement its local Mari-B gas and meet domestic demand. By the end of 2010, Israel relied on gas for around 40 per cent of its electricity supplied almost equally by its own Mari-B field and Egypt. 

Egypt to hold tender for energy drilling in the Mediterranean Sea

 AA

Egypt will hold a tender for energy drilling in the Mediterranean Sea, Egyptian Minister of Investment Osama Saleh said yesterday.

Saleh said they would invite leading international companies by the end of the year or at the beginning of next year to hold a tender for energy exploration and drilling in the Mediterranean Sea.

“The explorations by the Greek Cypriot administration entered into the continental shelf of Egypt, which is a subject of international law and agreements,” Saleh said.

Saleh said Egypt had laws that protected investors, adding that there was no situation that would affect investors negatively in Egypt. “There is no need to give investors in Egypt assurances. I’ve talked to investors in Egypt, and they are satisfied with the situation and have plans to do more business and expand their existing businesses. Egypt is a state with laws and institutions to protect investors.”

The investment system in Egypt is different, Saleh said. “Turkish investors prefer to build export-oriented factories in free trade zones because they are exempt from taxes.”

Egypt has bilateral agreements with Arab, African, European and American countries. “Therefore we present our investors a market with a population of 1.5 billion. The products exported from Egypt to these countries are not subject to customs and extra taxes.”

Saleh said a lot of Turkish factories had moved to Egypt because of qualified and cheap workers. “Among our targets are construction and contracting companies,” he added.

Turkey says joint energy projects with Greek Cyprus, Israel possible

Bülent Keneş      Todays' Zaman

Weary of a lingering political tension undermining potential large-scale energy deals in its surrounding region, Turkey sees it possible to cooperate with Greek Cyprus and Israel in joint energy projects in the Mediterranean “so long as the political atmosphere allows it,” Turkish Energy Minister Taner Yıldız told a meeting in Baku on Monday.

 

The minister was speaking at a meeting with the State Oil Company of Azerbaijan Republic (SOCAR) president on the sidelines of the World Economic Forum Strategic Dialogue on the future of the South Caucasus and Central Asia that kicked off in Baku on Monday.

“In case of a possible remedy to political issues that remain a gridlock hindering further prosperity in our region, Turkey will be ready to take steps in order to ensure a lasting peace environment,” Yıldız said in a rare statement of what can be regarded as "extending an olive branch.”

Underlining that a recent Israeli apology to Ankara over the Mavi Marmara raid should not be seen as an excuse for future energy partnerships with this country, Yıldız told reporters: “But it is possible that a cooperation in energy between Turkey and Israel follow an anticipated rapprochement.” He said Turkey will then “not only warm to partnering in energy deals with Israel but also would like to see Greek Cyprus be involved here.”

Turkey-Israel: the new Great Game

Daniel Dombey          Financial Times - BeyondBrics

There is a new Great Game afoot and it is taking place beneath the sea floor of the eastern Mediterranean.

Turkey and Israel’s tentative reconciliation is a process so fraught that US Secretary of State John Kerry appeared in Istanbul at the weekend to chivvy the two sides towards restoring full diplomatic ties. But if the steps he set out can be taken — agreeing compensation for nine Turks killed by Israeli forces in 2010, avoiding inflammatory talk, exchange of ambassadors — then a whole series of changes could be unleashed from Damascus to Brussels.


In particular, there is the question of a pipeline that could ferry newly discovered Israeli natural gas to energy-hungry Turkey — a move that would knit the two US allies closer together, despite enduring suspicions.

“It is possible that cooperation in energy between Turkey and Israel could follow an anticipated rapprochement,” said Taner Yilidz, Turkey’s energy minister, on Monday.

Turkish officials caution that bilateral talks on such cooperation can only really get going after ambassadors are exchanged — but add that business contacts on the topic are already burgeoning.

Interview with Charles Ellinas Chairman Of Cyprus Hydrocarbons Co.

Cyprus Mail

Interview with Charles Ellinas, chairman of the state hydrocarbons company KRETYK

* ‘Business as usual’ for oil and gas giants: Cyprus’ financial crisis not a problem
* Noble rebuffed Turkish demands to back away from exploratory drilling
* Six licensed blocks may hold 30 trillion cubic feet of gas - building an LNG first is a must

Q: There appears to be some confusion over the precise role of KRETYK, with reports suggesting some overlap with the duties of the Natural Gas Public Company, DEFA. Could you clear that up?

A: We are an oil and gas company, much like, say, Italy’s ENI. There is no overlap with DEFA, because we’ve met with them, and we agreed we have no intention of getting involved in gas sales and distribution in the island. And as far as I’m concerned, when we do bring the gas to the island - hopefully in 2018 - to Vasilikos plant there will be a link there and DEFA will take their gas and off they go. They’ll sell and distribute it and everything else. That’s not our job. DEFA is much like a utility company, much like for water. Gas is also a utility.

KRETYK is responsible for developing, managing exporting and operating gas. The Energy Service at the Commerce Ministry is responsible for licensing, and also polices adherence to the requirements of the production-sharing agreements. The companies involved in the production-sharing agreements have obligations to fulfill. We are not going to be policing that, it’s the job of the Energy Service, and there’s a very good reason for it: it could be that by the third round of licensing we could be strong enough to go into business with someone else and be part of a license. So we can’t be policing ourselves, someone else has to do it.

PRIO’s report - The Cyprus Hydrocarbons Issue: Context, Positions and Future Scenarios

Peace Research Institute Oslo (PRIO)

The discovery of hydrocarbons by Eastern Mediterranean countries that were previously thought to have no such natural resources is changing the geopolitics and economics of the region in ways that are still evolving. This study focuses on the case of Cyprus. It examines the relevant developments from the legal, political and economic angles, with the aim of producing a primer for those who are interested in the Cyprus hydrocarbons issue and wish to understand its many different aspects.
 
First we outline recent natural gas discoveries in the region and assess the significance of finds offshore Cyprus. We then examine the legal framework of maritime delineation in the region, in particular the UN Convention on the Law of the Sea (UNCLOS or the Convention) as well as the reasons why neighbouring Turkey objects to certain UNCLOS articles and therefore why it has not signed the Convention. In this context we also detail the maritime jurisdiction disputes in the region which relate to Cyprus, including the dispute between Greece and Turkey in the Aegean Sea and the maritime border dispute between Israel and Lebanon.

For those who are unfamiliar with the Cyprus problem we give the historical and political background to the problem and particularly the dispute about sovereignty between the island’s Greek Cypriot and Turkish Cypriot communities. We then outline the positions on hydrocarbons exploration of various parties involved in the dispute: the Greek Cypriots, the Turkish Cypriots, Turkey (including the difference in Turkey’s stance between exploration in the south of the island and exploration west of the island), as well as the response of the international community. We explain that, while it is clear that the international community supports the right of the (de facto Greek Cypriot) Republic of Cyprus (RoC) to explore for oil and gas, it also has strong expectations that the hydrocarbons revenues be shared in the event of a solution to the Cyprus problem.

For Download full report please click here


Source: Peace Research Institute Oslo (PRIO)

Cyprus seeks to speed up EEZ demarcation with Lebanon

The Daily Star Lebanon

BEIRUT - Cyprus Energy, Commerce, Industry and Tourism Minister Giorgos Lakkotrypis said Thursday his country was seeking to increase its cooperation with Lebanon in gas and oil exploration, adding that the demarcation of the Exclusive Economic Zone should be pursued rapidly.

The minister, who held talks with President Michel Sleiman, caretaker Prime Minister Najib Mikati and caretaker Energy Minister Gebran Bassil, is trying to expedite the demarcation of the joint maritime border between Lebanon and Cyprus to avoid any future conflict.

According to sources, Lakkotrypis is also trying to find a solution regarding the disputed maritime border between Lebanon and Israel. The disputed waters cover an area of 850 kilometers.

Lebanon has sought the help of the U.N. and U.S. to determine its actual share in this disputed zone. But the mediation efforts between Lebanon and Israel have not produced any results, according to observers.

Lakkotrypis described his talks with Lebanese officials as very productive, noting that both sides were keen to increase cooperation in gas exploration.

He added that Cyprus and Lebanon have reviewed ways to explore the joint gas wealth off the coast.