Category: Cyprus/TRNC

  • Russian, Italian, French companies among 15 bidding for oil and gas drilling rights off Cyprus – The Washington Post

    Russian, Italian, French companies among 15 bidding for oil and gas drilling rights off Cyprus – The Washington Post

    By Associated Press, Published: May 11

    NICOSIA, Cyprus — Major oil and gas companies such as Russia’s Novatec, Italy’s ENI, France’s Total, and Malaysia’s Petronas are among 15 firms and consortiums that are seeking to carry out exploratory drilling for gas deposits off southern Cyprus, the island’s commerce minister said Friday, despite Turkey’s strong objections.

    The minister, Neoklis Sylikiotis, said the companies that applied for a license to drill by Friday’s deadline also include ones from Canada, the UK, Norway, Israel, South Korea and the U.S., surpassing the government’s hopes.

    The bids come as the small east Mediterranean island nation is reeling from Europe’s financial crisis. It economy is projected to shrink by half a percentage point of GDP this year, and unemployment is hitting record highs.

    “We’ve all had great expectations from this licensing round and I can tell you not only have the results not belied those expectations, they’ve exceeded them by far,” Sylikiotis told a news conference.

    via Russian, Italian, French companies among 15 bidding for oil and gas drilling rights off Cyprus – The Washington Post.

  • Czech FM scolds Turkey over Cyprus EU stance

    Czech FM scolds Turkey over Cyprus EU stance

    FAMAGUSTA GAZETTE

    5 8 2012 6 41 56 PM 2278192

    In a terse statement aimed at Turkey, the Czech First Deputy Prime Minister and Minister of Foreign Affairs Karel Schwarzenberg has said that no country from outside the European Union can intermingle in it or proclaim conditions for another member state.

    Turkey has declared that it will not participate in any EU session when Cyprus is hosting the presidency, which begins on July 1.

    Schwarzenberg was speaking after meeting his Cypriot counterpart, Erato Kozakou-Marcoullis, when they examined issues concerning the EU and the forthcoming presidency of the European Council.

    In her remarks, Marcoullis warmly welcomed the FM of the Czech Republic, noting “that with the Czech Republic we have longstanding and very strong bonds of friendship and cooperation on a number of issues and in many fields”.

    As members of the EU, she said, that joined together on the 1st May 2004, “we have embarked on this very important membership in the EU in the family of the EU”, noting the Czech republic already had a very successful presidency and Cyprus is now preparing for its own presidency of the Council of the EU in less than two months.

    “We discussed today all these issues, our bilateral relations and how we can make this relationship even stronger in some new fields of cooperation”, she added.

    Marcoullis said they also discussed regional issues, issues that are being examined in the Foreign Affairs Council, particularly the Southern Neighbourhood and the situation in the countries of the Arab Spring. She briefed her colleague on Cyprus’ preparations for the EU and discussed the Cyprus issue.

    Concluding, Marcoullis said “we look forward to much stronger and closer cooperation”.

    In his remarks, Schwarzenberg congratulated Marcoullis who will be at the helm of the Presidency, noting it “will be a very exciting experience. I am sure that she will manage it very well”.

    He said the Czech Republic will respond to the Cyprus presidency, for whatever it is needed and is ready to offer its experiences.

    Referring to Turkey’s reaction to Cyprus assuming the presidency of the European Council, Schwarzenberg said “we are very disappointed that a neighbouring country of Cyprus, instead of using the chance of a country which expressively says that it wishes to become a member of the EU, instead of using this in its own ambition to become a member of the EU, evidently, it acts in the wrong way to the Cyprus presidency”.

    He stressed “I can assure one thing that the EU and its member states won’t let blackmail by anybody in the world. We have a member state and the member states are entitled to the presidency – STOP. You see nobody from outside can intermingle in it or proclaim conditions and I hope that Turkey will understand that the Cyprus presidency is a chance for Turkey, much more than anything else”.

    Concluding, he said “I hope very much that Cyprus will be successful in its projects of extracting gas and oil in its territorial waters”.

    via Czech FM scolds Turkey over Cyprus EU stance.

  • Turkey’s Cyprus Oil Quest to Cost $250 Million

    Turkey’s Cyprus Oil Quest to Cost $250 Million

    Turkey’s plans to search for oil and gas on its section of the divided island of Cyprus will cost about $250 million, Sabah reported, citing Energy Minister Taner Yildiz.

    cyp oil and gas drilling 72

    Turkey has as many as six exploration projects in the Mediterranean, including Cyprus, and state oil company Turkiye Petrolleri AO signed an exploration and production sharing agreement with Royal Dutch Shell Plc (RDSA) last year for blocks off Antalya, Yildiz said, according to the newspaper.

    via Turkey’s Cyprus Oil Quest to Cost $250 Million, Sabah Reports – Bloomberg.

  • “Open-Ended Talks Prevent Solution to Cyprus Question”

    “Open-Ended Talks Prevent Solution to Cyprus Question”

    President Dervis Eroglu of Turkish Republic of Northern Cyprus (TRNC) said that going on Cyprus talks in an open-ended way would prevent reaching a solution.

    043012 qopen ended talks prevent solution to cyprus questionq 1

    During a meeting on Monday, Eroglu said that there could be a study by a technical committee in order to eliminate the inconsistencies, but a “leaders meeting” was not on the agenda.

    Eroglu said that Greek Cypriot leader Demetris Christofias did not accept a multilateral conference on Cyprus issue, and mentioned carrying out open-ended talks.

    An open-ended talk would continue 40 more years, and no one could make Turkish Cypriots sit on the negotiation table for another 40 years, he added.

    On April 27, UN head’s special Cyprus adviser Alexander Downer said he planned to carry out “a two-week shuttle diplomacy” between Turkish and Greek Cypriot leaders to see if they could agree on methods for a fresh round of settlement negotiations to reunify their island.

    “There will be no peace talks between the sides until leaders find a common ground to continue with the negotiations in a fresh round,” Downer noted.

    Downer said the UN head had an intention to hold a international conference on the Cyprus issue this summer, adding that Ban’s decision hinged on a “common negotiations ground” between the two leaders that could lead to a comprehensive solution.

    AA

  • Turkish gas drill in Cyprus hikes tensions

    Turkish gas drill in Cyprus hikes tensions

    Turkish gas drill in Cyprus hikes tensions

    Turkey has begun drilling for natural gas in northern Cyprus, increasing tension across the east Mediterranean over control of offshore gas fields.

    NICOSIA, Cyprus, April 27 (UPI) — Turkey has begun drilling for natural gas in northern Cyprus ratcheting up growing tension across the east Mediterranean over control of offshore gas fields that could transform the economies of a region long barren of energy resources.

    The Turks control the northern one-third of Cyprus, where they’ve stationed 30,000 troops since 1974 when they invaded the island, which is dominated by Greek Cypriots.

    Ankara calls its zone the Turkish Republic of Northern Cyprus but it’s recognized only by Turkey. The Greek Cypriot government in Nicosia is internationally considered the sovereign authority.

    Technically, that means the Turks are drilling illegally.

    That exacerbates a spider’s web of territorial and maritime disputes in the east Mediterranean that intersect with long-running and potentially explosive conflicts between Israel and its Arab neighbors and the ancient rivalry between Turkey and Greece.

    Israel made the first discoveries off its northern coast in 2009-10 with the Noble Energy Corp. of Houston striking major reserves.

    The Tamar field contains an estimated 9 trillion cubic feet of gas but the nearby Leviathan field has 17 tcf, the biggest strike made so far in the region. Four subsequent finds have boosted estimated Israeli reserves in the Levant Basin to 35 tcf, worth in excess of $130 billion and enough to turn the once energy-poor Jewish state into an exporter.

    The Turks launched their drilling in the TRNC Thursday, sharpening the swelling dispute over who has rights to the island’s potential energy riches and setting back hopes of reconciliation between the two communities and the states that support them.

    Turkish Energy Minister Taner Yildiz declared the onshore well operated by the state-run Turkish Petroleum Corp. has “strategic significance and we attribute great importance to it.”

    Cyprus could be sitting on enough natural gas to last it 200 years.

    When the Greek Cypriots, defying Turkish warnings, began exploration of the southernmost of their 12 maritime blocks in 2011, Turkey sent a seismic vessel escorted by a warship into Greek Cypriot waters and warned it would “retaliate even more strongly” to any further drilling.

    Israel and Cyprus, where Noble Energy made a strike of 5 tcf-8 tcf recently, are collaborating on plans to jointly export their gas to Europe via an underwater pipeline to Greece.

    Another option is building a liquefied natural gas plant, possibly offshore which would make it the world’s first floating LNG terminal — and a juicy target. China’s interested in building it.

    The economic cooperation between Israel and Cyprus, 300 miles to the north, is also forging a new military alliance between the Jewish state and Greece.

    This is rapidly replacing the strategic alliance between Israel and Turkey that was formalized in 1996, but broke apart in May 2010, in large part because of growing antagonism by Turkey’s Islamist-led government.

    So a major realignment in the eastern Mediterranean appears to be under way as the region’s energy resources are uncovered.

    The U.S. Geological Survey reported in 2010 that the Levant Basin, embracing Syria, Israel, the Gaza Strip and Cyprus, contains an estimated 122 tcf of gas and some 4 billion barrels of oil.

    In February, Israel, a major regional military power, signed a military cooperation pact with the Greek Cypriots, whose military forces are miniscule. This allows Israeli ships and aircraft to use Cypriot territorial waters and airspace.

    That will probably open the way for Israel to deploy F-16s on the island if the Turks get pushy there. Turkey has a squadron of its own F-16s in the TRNC.

    Meantime, the Israelis are making elaborate plans to defend their offshore fields against terrorist or missile attacks.

    For now at least, the main danger is seen to be Hezbollah, the Iranian-backed movement in Lebanon. Beirut claims that Leviathan, as designated by Israel, overlaps into 330 square miles of Lebanese waters.

    The Lebanese are preparing to launch their own exploration in waters likely to hold major gas fields, adding to the complex energy mosaic.

    Hezbollah, which has fought Israel since 1982, says it won’t allow the Jewish state to “plunder” Lebanese resources.

    Israel took part in naval exercises in the region with U.S. and Greek warships March 25-April 5 that included protecting offshore gas platforms. Turkey was excluded.

    The Israeli air force has held several joint maneuvers with the Greeks, where once they trained with the Turks.

    via Turkish gas drill in Cyprus hikes tensions – UPI.com.

  • Turkey to begin gas exploration off Cyprus within weeks

    Turkey to begin gas exploration off Cyprus within weeks

    Turkey will begin drilling for oil or gas off northern Cyprus at the end of March, having already carried out seismic studies, the head of state energy company TPAO said on Monday.

    oil rig

    Any gas discovery in this area could raise the stakes in the negotiations over reunification of the island, and possibly increase tensions with Israel.

    EU-member Cyprus, run by a Greek Cypriot government, started exploring for gas south of the island in September 2011, angering Turkey, which acts as the protector of the Turkish Cypriot separatists in the north.

    In reaction, Turkey and the Turkish Cypriot administration signed a pact paving the way for exploration, and dispatched its only seismic research vessel, owned by TPAO, to those waters under naval escort to search for potential reserves.

    “We’re starting drilling in northern Cyprus in the coming days…We have started shipping our equipment there,” TPAO chief executive Mehmet Uysal told Reuters on Monday, adding that drilling would start before the end of March.

    “If there is a need to drill in areas where the licenses clash then we would take all measures,” he said, without elaborating on what that meant.

    Despite warnings from Ankara to the Greek Cypriot government not to let Texas-based Noble Energy drill an offshore block, Noble’s drill went ahead and struck gas on the first attempt, potentially offering the island an energy source that can be used to produce the entire country’s electricity supply and possibly offer an export option for excess fuel.

    Although it has limited fuel resources of its own, Turkey is surrounded by some of the biggest gas reserves in the world and is positioning itself as a key transit hub for Russian and central Asian gas supplies to Europe.

    “We’re hoping this will be a peace project because Turkey is the main outlet for this gas,” Uysal said.

    “All these companies drilling will have to send the gas to Europe and Turkey is the main route.”

    Large oil and gas deposits recently discovered in the eastern Mediterranean threaten to exacerbate a number of existing tensions.

    In addition to the Turkish-Cypriot dispute, Israel and Lebanon are also at odds over their maritime border.

    Beirut contends Israel’s proposed border encroaches into Lebanon’s Exclusive Economic Zone, denying the Lebanese part of the lucrative Leviathan basin.

    The Nicosia government signed a treaty with Tel Aviv last year which committed the two states to cooperating on developing their offshore oil projects.

    The head of the Lebanese parliament’s Public Works, Transport, Energy and Water Committee said the move by Turkey made relations between the four countries more difficult.

    “I think this will complicate the issue which is already complicated,” Mohammad Qabbani said.

    “I think that there should be negotiations so that everybody will take their right. Except for Lebanon with Israel – we will not negotiate, we will ask for southern borders to be respected.”

    Lebanese parliament speaker Nabih Berri visited Cyprus last month following a trip by Israeli Prime Minister Benjamin Netanyahu.

    Berri is believed to have warned Cypriot President Dimitris Christofias against warming ties with Israel.

    The parliament speaker threatened that Lebanon would not ratify a 2007 agreement demarcating the maritime border between the two states unless Cyprus renegotiates its maritime agreement with Israel.

    Qabbani said the Cypriots had suggested that they were willing to seek a deal.

    “[Berri] said that the Cypriot officials were being objective and receptive to his point of view. It is for us to wait and see how they continue from there on.”

    Lebanon has yet to commence exploration and drilling of its offshore oil and gas deposits, including those not straddling its southern maritime border with Israel.

    (Al-Akhbar, Reuters)

    via Turkey to begin gas exploration off Cyprus within weeks | Al Akhbar English.