May 04, 201918:37
- Turkey said its vessels would be carrying out drilling operations in the Mediterranean until September
- According to reports in the Cypriot media, the operation will encroach on Cyprus’s exclusive economic zone
BRUSSELS: The EU and Egypt on Saturday urged Turkey to reconsider plans to start exploratory drilling for oil and gas off Cyprus, already condemned as illegal by the European Union.
The Egyptian foreign ministry warned of the repercussions of "any unilateral measures on the security and stability of the Eastern Mediterranean region."
"Any actions by states in the region need to abide by the rules of international law and its provisions," the ministry statement said.
The EU's diplomatic chief Federica Mogherini said: “We express grave concern over Turkey’s announced intention to carry out drilling activities within the exclusive economic zone of Cyprus”.
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| As of 30 June 2018 |
24 February, 2019
A long-delayed bill creating a Cyprus hydrocarbons fund will be put to parliament for a vote, with the aim of utilising profits from natural gas for future generations to enjoy but there are fears the cash cow will be abused.
The government submitted the bill in 2015 but it got shelved as it fell victim to politics and confrontation between the parties.
While a general consensus was built amongst political parties that natural gas revenues should be set aside for future generations through the creation of the Hydrocarbons Fund, economists and some MPs have expressed fears that it will become a “fiscal hole filler”.
A University of Cyprus professor and energy policy expert said that while MPs are ready to vote in the bill, extra powers will be given to the Finance Minister and loopholes introduced.
“My fear is that we may see the Hydrocarbons Fund having the same fate as the Social Insurance Fund reserves which have been spent through the state budget,” said UCY professor Constantinos Papaloucas.
Sunday, 11 March 2018
Disputes over natural gas reserves in the Eastern Mediterranean could play into Egypt’s favor where exports to Europe are concerned, Yigal Chazan suggests in a piece for the Financial Times (paywall). The competition between Mediterranean neighbors over natural gas could “complicate plans to build pipelines linking producer countries to consumer markets,” he says, arguing that Egypt’s idle liquefaction plants “could offer Cyprus and Israel a cost-effective and secure distribution route to Asia, through the Suez Canal, and Europe.” Egypt’s Dolphinus Holdings has already inked an agreement that will see Egypt receive USD 15 bn-worth of Israeli gas. Cyprus is on its way to singing a similar-style pact with Cairo, which is gearing up to sign an agreement with the EU before mid-2018 that will see it export LNG through its liquefaction plants.
This comes as the Turkey-occupied Turkish enclave of Cyprus threatened to throw fuel to the fire. Its so-called "Foreign Minister" Kudret Ozersay said that they would launch their own exploration efforts if the internationally recognized Cyprus government doesn’t sit down for negotiations, Reuters reports.
On a related note, Egypt will soon be at liberty “to fish for the next giant cache to satisfy its growing domestic appetite” for LNG, with Eni close to finalizing work on Zohr and BP wrapping up its activities in Atoll and the Giza and Fayoum concessions, says Upstream Online.
