06 Nov 2020 | 12:43 UTC London
Stuart Elliott, Editor: Alisdair Bowles
London — The EU Council on Nov. 6 extended by one year its framework for sanctions that can be imposed against those responsible for Turkey's gas exploration work in disputed waters of the East Mediterranean.
The Council first adopted the sanctions framework in November last year.
"The Council today adopted a decision extending for one year, until Nov. 12, 2021, the existing framework for restrictive measures in response to Turkey's unauthorized drilling activities in the Eastern Mediterranean," it said.
"The EU will therefore maintain its ability to impose targeted restrictive measures on persons or entities responsible for or involved in unauthorized drilling activities of hydrocarbons in the Eastern Mediterranean," it said.
The sanctions would consist of a travel ban to the EU and an asset freeze for persons, and an asset freeze for entities.
In addition, EU persons and entities are forbidden from making funds available to those listed, it said.
The two officials to be placed under sanctions in February were TPAO exploration head Mehmet Ferruh Akalin and deputy exploration director Ali Coscun Namoglu.
Gas riches
TPAO has drilled a number of wells offshore Cyprus since August last year, including in blocks already licensed by Cyprus to international explorers such as France's Total and Italy's Eni.
Cyprus is already home to as much as 550 Bcm of gas resources following the Aphrodite, Calypso and Glaucus discoveries of recent years, so the stakes are high as the dispute over maritime rights continues to intensify.
Turkey has previously warned it would increase its presence in the East Mediterranean if EU sanctions were imposed.
TPAO has also moved to carry out seismic surveying operations in the waters between the Greek island of Crete and Cyprus, which Turkey claims as part of its continental shelf.
The surveying vessel, the Oruc Reis, continues to operate in the area as of Nov. 6, according to S&P Global Platts trade flow software, cFlow.
Greece and Cyprus have called for harsh sanctions against Ankara, but so far the EU has stopped short of imposing new punitive measures.
'Watershed' moment
The EU's foreign policy chief Josep Borrell warned Sept. 15 that the bloc's relations with Turkey had reached a "watershed" moment over Ankara's continued exploration work in the East Mediterranean.
Turkey has hoped to replicate the significant gas discoveries made in the East Mediterranean, including the Zohr field offshore Egypt, Israel's Leviathan and Tamar fields, and three discoveries in waters offshore Cyprus.
However, Turkey's energy minister Fatih Donmez in September said all seven of the gas wells drilled to date by Turkey in the East Mediterranean had proven to be uneconomic.
And it was a well drilled in Turkey's sector of the Black Sea that instead led to a significant discovery, with Ankara announcing in August the Sakarya find which it believes now holds some 405 Bcm of gas.
Turkey is also a key transit country for oil and gas supplies, with a large part of the Southern Gas Corridor designed to bring 10 Bcm/year of Azerbaijani gas to Southern Europe located in Turkey.
The final part of corridor -- the TAP gas line to Italy -- is set to start up before the end of 2020.
