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| The new names in Cyprus' 3rd Licensing Round Negotiations |
Christopher Coats
After moving to open up three offshore blocks for natural gas exploration, Cyprus has reported receiving interest from a number of international firms for areas near the recent discovery of a reported “super giant”.
According to media reports, Nicosia found interest in the effort from ENI, Total, Statoil, Exxon Mobil, Qatar Petroleum, and Cairn for an area not far from where Italy’s Eni discovered a field that could hold up to an estimated 30 trillion cubic feet of natural gas.
Earlier reports suggested that the find could end up as the Mediterranean’s largest discovery to date. The discovery also led to a boost of confidence on the part of regional energy actors like Cyprus, spurring interest from a number of firms.
That progress helped ease concerns about Cypriot potential, after a series of firms active in the region reported that they had failed to find exploitable natural gas reserves off the coast of the country, casting some doubt on its energy aspirations.
Last year, Eni and Korea Gas Corp (KOGAS) announced that their drilling efforts had once again come up dry. The consortium had similar results during a drilling effort in 2014 on the same block.
The setback offers a stark contrast with nearby Israel, who has made significant progress towards exploration, production and even exports over the last three years while others in the region continue to struggle. Lebanon also made a pitch for offshore exploration in recent year, though political limitations have hindered even the early stages of licensing.
Since first discovering its offshore natural gas potential in 2011, Cyprus has worked to establish itself as a regional energy leader, including outreach efforts and partnerships with others hoping to benefit from the region’s potential.
Beyond energy security and financial gain, the Cypriot effort has also led to talks of potential reunification with (occupied) northern Cyprus and improved relations with Turkey, though recent events in Ankara could impact the latter possibility.
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