‘Goal is to sell first Cyprus gas in 2028’ - CYPRUS MAIL

Tuesday 19 May
Tom Cleaver

Cabinet on Tuesday approved the development and production plan for the Kronos gas field, which is located in Block 6 of Cyprus’ Exclusive Economic Zone (EEZ), with President Nikos Christodoulides stressing the importance of the plan’s approval ahead of the day’s cabinet meeting.

“Let me remind you that the first discovery in the Republic of Cyprus’ Exclusive Economic Zone was in 2011, and 15 years later, we are taking, I believe, the most important decision regarding the state of natural gas exploitation,” he said.

He added that in addition to the development and production plan, cabinet would also approve “the agreements concerning the basic terms of sale of Cypriot natural gas”.

“This is a very important development for the utilisation of our country’s energy resources. The goal is to sell the first Cypriot natural gas to Europe through Egypt in 2028 and we are approving all the relevant agreements,” he said.

Israel-Greece-Cyprus energy deal ‘top priority’ this year - JNS

March 28, 2024 / JNS
Etgar Lefkovits 

The three allies plan to link their electrical grids and cooperate on natural gas.

Finalizing a major energy deal that includes connecting the power grids of Israel, Greece and Cyprus and a possible future regional natural gas pipeline linking the eastern Mediterranean allies is a “top priority” for 2024, the Israeli and Cypriot energy ministers said on Wednesday.

The long-awaited accord, which was stalled by the nearly six-month-old war with Hamas in Gaza, will not include Turkey. Ankara has reemerged as one of Israel’s bitterest critics in the wake of the Israeli military campaign triggered by the Oct. 7 terrorist invasion.

The expected agreement comes amid burgeoning relations with both Cyprus and Greece, which have maintained support for Israel throughout the war, and close ties in a variety of fields including energy, defense, tourism, high-tech and cybersecurity.

“Cyprus is a regional ally, and cooperation in the field of energy holds great potential opportunities for both countries,” Israeli Energy Minister Eli Cohen said Wednesday as he hosted his Cypriot counterpart to finalize the accord.

Cypriot Minister of Energy, Commerce and Industry George Papanastasiou said, “Cyprus and Israel share a vision for the eastern Mediterranean with the countries looking at energy as a sector that can facilitate peace, stability and prosperity in the region.”

Cyprus changes tack with plan for Mediterranean gas link to Israel - REUTERS

June 21, 20235:22 AM GMT+3
Michele Kambas

• Cyprus wants shorter gas pipeline to Israel
• Part of broader project to get EastMed gas to Europe fast
• New Cyprus government talking to Israel on plans
• Longer pipeline through Med 'challenging'

NICOSIA, June 20 (Reuters) - Cyprus hopes to develop plans for a pipeline linking it to Israel's east Mediterranean gas fields during talks which start next month, the island's top energy official told Reuters.

Proposals by the new centrist Cypriot government, which came to power in March, represent a markedly different approach to its predecessors in getting gas to Europe and other markets.

Minister: 2 major gas companies keen on Israel-Cyprus plan for pipeline, gas processing facility - THE ASSOCIATED PRESS

May 16, 2023
MENELAOS HADJICOSTIS

NICOSIA, Cyprus (AP) — Two major international oil and gas companies have so far expressed interest in Israeli-Cypriot plans to build a pipeline that would convey offshore natural gas from both countries to Cyprus where it would be liquefied for export by ship, a Cypriot official said Tuesday.

Energy Minister Giorgos Papanastasiou told The Associated Press in an interview that the plan will be pitched on May 29 to energy companies involved in hydrocarbon exploration off Cyprus’ southern coast and other firms involved in pipeline and gas processing plant manufacture.

Cyprus, Israel pledge quick deal in gas field dispute - KATHIMERINI

19.09.2022 • 19:30
MENELAOS HADJICOSTIS

Israel and Cyprus said Monday that they have made “significant” headway in resolving a long-running dispute over an offshore natural gas deposit and say they are committed to quickly reaching a deal as Europe looks for new energy sources.

Cyprus Energy Minister Natasa Pilides and her Israeli counterpart, Karine Elharrar, held talks in the Cypriot capital, pledging to press toward a “fair and swift resolution.”

Israel claims that a portion of Cyprus’ Aphrodite deposit estimated to hold some 4.4 trillion cubic feet of natural gas falls inside its nearby Ishai field, along an offshore demarcation line that separates the two countries’ exclusive economic zones.

Negotiations have stretched for several years, but Europe’s need to wean itself off Russian energy sources since the war in Ukraine appears to have added a new sense of urgency to the talks. Russia has cut back natural gas supplies to Europe, driving up prices.

Israel, Cyprus face an opportunity for shared economic reservoir - opinion - THE JERUSALEM POST

MARCH 10, 2022 19:03

Michael Harari

The Yishai reservoir, located about 170 km. west of Haifa, is part of Israel’s economic waters and is a geological continuation of the Aphrodite reservoir, located in Cypriot economic waters. In other words, it is a cross-border reservoir.

The most common practice worldwide is an agreement for joint exploitation, i.e. unitization. The two countries agreed that this was indeed a joint reservoir, but even though more than 10 years had passed, the countries had not been able to reach an agreement concerning the exact portion of each country.

A year ago, the two governments decided to impose the task on the companies on both sides and instructed them to negotiate between them to reach an agreement on the compensation that the companies on the Cypriot side will give to those on the Israeli side.

The compensation is for a full waiver by the Israeli side of its rights and assets in the reservoir, as well as a waiver of a unitization move, as agreed between the countries in 2010. A time frame of one year was set for this, at the end of which, if the companies failed, the reins would be returned to the two governments.

Gas ‘breakthrough’ could see movement in months - CYPRUS MAIL

March 14, 2021

Elias Hazou

After nine years, an agreement was reached this week to move forward gas sharing between Israel and Cyprus as a field straddles the borders. But how long will it take to get off the ground?

Following nine years of stop-start talks, the understanding reached earlier this week between Cyprus and Israel over developing the Aphrodite gas field was hailed as a ‘breakthrough’. Given so much time has elapsed, the standard political pageantry surrounding the news was perhaps understandably greeted with a fair amount of skepticism. But analysts do gauge the development as positive, and one that removes an unnecessary thorn in relations between the two countries.

The Aphrodite-Yishai field is a cross-border natural gas reservoir, but the two governments have been unable to reach an agreement on the fine print of its commercial exploitation.

The Aphrodite field holds an estimated 4.1 trillion cubic feet of gas. At stake was about 10 per cent of the deposit.

Israel, Cyprus and Greece agree to link power grids via subsea cable - REUTERS

MARCH 8, 20212:27 PM

JERUSALEM (Reuters) - Cyprus, Greece and Israel on Monday signed an initial agreement to build the world’s longest and deepest underwater power cable that will traverse the Mediterranean seabed at a cost of about $900 million and link their electricity grids.

The project, called the Euro-Asia interconnector, will provide a back-up power source in times of emergency, said Israeli Energy Minister Yuval Steinitz, who was in Nicosia to sign a memorandum of understanding with his counterparts.

Cypriot Energy Minister Natasa Pilides said it marked “a decisive step towards ending the island’s energy isolation, and consequently, our dependence on heavy fuels.”

The cable will have a capacity of 1,000-2,000 megawatts (MW) and is expected to be completed by 2024, according to Israel’s energy ministry.

The EastMed Pipeline is a win-win for Israel, Cyprus and Greece - THE JERUSALEM POST

JANUARY 30, 2021 20:37
Michael Harari

In recent years, the Eastern Mediterranean has stood out as a distinct sub-region, receiving wide attention in the regional and international arena – politically, strategically and economically.

The discovery of natural gas in the Exclusive Economic Zones of Israel, Cyprus and Egypt, and the clear potential for the discovery of additional gas fields in the economic waters of other countries such as Lebanon, were a major catalyst for the development of new regional architecture on the one hand, and of rising tension between part of the countries involved on the other.

The bilateral relationship between Israel and Cyprus, which has become very close in the last decade, has in many ways been a cornerstone of the regional alliances that have been woven in recent years.

The Regional Gas Forum, established two years ago in Cairo and which consists of seven members, is a fascinating illustration of the common interests formed in the region. These are Egypt, Israel, Greece, Italy, Jordan, Cyprus and the Palestinian Authority. Israel is rightly entitled to observe these developments with great satisfaction.

Cyprus, Israel move forward with talks over disputed gas field - NEW EUROPE

AUGUST 7, 2020 : 19:22 

Talks between Nicosia and Tel Aviv and Israel are progressing on Israel’s Yishai gas field which is adjacent to Cyprus’ Aphrodite field, Cyprus’ new Energy, Commerce and Industry Minister Natasa Pilides said on August 5 after her first video conference with her Israeli counterpart Yuval Steinitz, Cyprus News Agency reported.

The Cypriot government granted the Noble Energy, Shell, and Delek consortium an exploitation licence for the Aphrodite gas field. The companies intended to pipe the gas to neighbouring Egypt. Noble Energy has since been bought out by Chevron. But Israel claims a share of the production of Aphrodite, as a small portion of the reservoir stretches into the Yishai field, according to CNA.

Asked if the dispute will be resolved soon, Charles Ellinas, a senior fellow at the Global Energy Center at the Atlantic Council, told New Europe on August 7, “This is what Cyprus Energy Minister has said, but we have not yet seen a response from the Israeli side, other than welcoming Cyprus’ proposals and confirming that it will now study them”.

Israel Could Be Key to 2020 Middle East Geopolitics - THE BEGIN-SADAT CENTER FOR STRATEGIC STUDIES

January 2, 2020
Frank Musmar
BESA Center Perspectives Paper No. 1,389, January 2, 2020

EXECUTIVE SUMMARY: Israel’s geographical position means it must stay agile and manage complex relations with its Muslim neighbors through quiet collaboration and smart use of its technological and economic advantages. Over the past two decades, Israel has discovered offshore gas, begun extensive seawater desalination, and dramatically expanded its navy’s platforms and missions. Ten years ago, Israel depended on Egypt’s natural gas; nowadays, Israel exports natural gas to Egypt and Jordan.

Steinmetz co slams Israel for giving Ishai rights to Cyprus - GLOBES

11 Nov, 2019 18:46
Amiram Barkat

"The government is allowing Delek Group, Noble Energy to humiliate it," says Ohad Schwartz, a director at Nammax Oil & Gas,

"It is embarrassing to see how the Israeli government is allowing Delek Group Ltd. (TASE: DLEKG) and Noble Energy to humiliate it, after having nurtured them and allowed them to take control of both the local and regional natural gas markets," Ohad Schwartz, a director at Nammax Oil & Gas, controlled by Beny Steinmetz, wrote to Ministry of National Infrastructure, Energy, and Water Resources director general Ehud Adiri. Schwartz represents the Israeli companies that are partners in the Yishai prospect and are claiming rights in the Aphrodite natural gas reservoir, most of which is in Cypriot territorial waters. Nammax was a partner in the Aphrodite 2 gas drilling, in which the reservoir was discovered by Noble Energy in 2011. The reservoir also extends into Israeli economic waters.

Israel Stays Mum as Development Work Begins at Giant Cyprus Gas Field - HAARETZ

Jul 24, 2018 10:49 PM
Ora Coren

Countries have failed to agree on rights of license holders in adjacent Israeli field, but Aphrodite partners begin development anyway

After years of delays, development of Cyprus’ Aphrodite gas field is getting under way without any Israeli government role, even though part of Aphrodite’s reservoir lies in Israeli economic waters and is licensed by the government for development.

Critics say Israel’s inaction jeopardizes not only 3 billion shekels ($820 million) in future tax revenues but also its ability to guarantee its stakes in other reservoirs shared with neighboring countries in the Eastern Mediterranean.

“It’s not clear, to say the least, why the government is acting this way, in particular the inexplicable ease with which it could cause a loss of 3 billion shekels in taxes,” said Rony Halman, the chairman of Israel Opportunity, a partner in the Ishai field adjacent to Aphrodite.

“The inaction of the Israeli government also threatens to create a dangerous precedent in connection with other joint reservoirs we have with our neighbors — Lebanon and Egypt,” Halman told TheMarker.

Risks Posed by Competing Claims to Eastern Mediterranean Oil and Gas Resources - WASHINGTON REPORT ON MIDDLE EAST AFFAIRS

2018 JUNE-JULY
Washington Report on Middle East Affairs, June/July 2018, pp. 34-35

Special Report
By Jonathan Gorvett

WHEN ISRAELI PRIME Minister Binyamin Netanyahu spoke in Nicosia in May of “building a great alliance” between his nation, Cyprus and Greece, he was also quick to praise the “unrivaled network of common interests” that exists among the three states.

And if advocates of a giant new project have their way, that network may be about to get a lot more physically tangible.

For Netanyahu was in Nicosia to solidify support for the proposed EastMed Pipeline, a 1,350-mile natural gas connector that aims to bring Israeli and Cypriot gas to energy-hungry European markets. If ever constructed, the pipeline would form a specialized steel and concrete tie among the three nations, stretching far across the deep of the (sometimes unstable) Eastern Mediterranean floor.

Gas dispute with Israel is in ‘no one’s interest’ - CYPRUS MAIL

MAY 6, 2018

Elias Hazou

Fresh reports this week of Cyprus and Israel resorting to arbitration to resolve a dispute over future earnings from the Aphrodite gas field appear to be driven by angst on the Israeli side.

The likelihood of the two sides going for arbitration seems far-fetched, said Constantinos Hadjistassou, assistant professor at the University of Nicosia.


“Nobody really wants that, so I was surprised to read these press reports. More likely, the Israelis are playing hard ball,” he said.

He was alluding to the article in Israeli news outlet Globes, citing sources claiming that the two neighboring nations might be seeking international arbitration sometime over the coming months.

The Aphrodite reservoir is located on the border between the economic waters of Israel and Cyprus, with most of the reservoir lying on the Cypriot side.

Eastern Mediterranean: International Arbitration for 'Venus' - IBNA

02-MAY-2018, 11:14
Nefeli Tzanetakou

Cyprus and Israel are expected to resume international arbitration in order to put an end to their seven-year dispute over the exploitation rights of the "Aphrodite" ("Venus") field.

On May 8, a two-sided meeting in Nicosia is scheduled to take place, with the participation of Greece, where, among other things, the implementation plan for the East Med pipeline, which is expected to transport the Eastern Mediterranean gas in Europe will be discussed.

In 2010, Cyprus and Israel co-signed the demarcation agreement relevant to the Exclusive Economic Zone of each country, with the aim of subsequently completing and strengthening this agreement with the signing of a second one providing for the co-operation of those hydrocarbons that are on both sides of the maritime border.

But nothing like this ever happened...

Owners of Israeli field seek to stop Cyprus deal with Egypt - CYPRUS MAIL

MARCH 14, 2018

George Psyllides

The owners of the rights in an Israeli natural gas field next to Cyprus’ Aphrodite reservoir have asked the Israeli government to take steps to stop the island signing a gas deal with Egypt as this would affect their interests, reports said.

Israeli business news portal Globes said the owners of the rights in the Ishai licence, a continuation of the Cypriot Aphrodite gas reservoir on the Israeli side of the boundary between the two countries’ economic zones, wrote to Petroleum Commissioner Yosi Wurzburger and to Minister of National Infrastructures, Energy and Water Resources, Yuval Steinitz claiming that the extraction of gas on the Cypriot side would lead to the extraction of gas from Ishai as well.

In Nicosia, a government source rebuffed the demand, according to the Cyprus News Agency.

“The claim, which is old, is unreasonable since they have officially admitted that the quantity discovered at Ishai is negligible and cannot be recovered,” the source told the agency.

The Israeli demand followed reports that Cyprus was in talks with Egypt to export gas from Aphrodite.

Israel and Cyprus: Untying the Gordian Knot on East Mediterranean Gas - MODERN DIPLOMACY

NOV 27, 2017

Antonia Dimou

Gas exploration and drilling activities in Israeli and Cypriot waters along with licensing rounds for blocks near the super-giant Zohr gas field raise the likelihood for large gas discoveries in the East Mediterranean. Israel and Cyprus speed up efforts for the development of energy resources to be primarily channeled to Europe.

Europe is considered as prime export destination for regional supplies of liquefied natural gas given that the continent is seeking to enhance energy supply and transit security.

Israel seems to be taking two steps forward and one step back on natural gas. A renewed Israeli gas regulation framework has portended a competitive market as new companies acquire offshore drilling rights. It is in this context that a Greek company, Energean Oil and Gas has secured full ownership of Israeli Karish and Tanin gas fields at the price of 148 million dollars aiming to deliver 88 billion cubic meters (bcm) of natural gas to the Israeli market in the next forty years. The Greek company has submitted a field development plan to the Israeli government and secured sales agreements for more than 3 bcm annually at a 20 percent price discount compared to Leviathan partners’ pricing to Israeli power provider Dalia Power Energies and its sister company Or Power Energies. This arrangement has set the stage for competition that will benefit consumers and the Israeli economy.

Turkey Lobbying Israel to Push Cyprus on Approving Gas Pipeline - BLOOMBERG

July 20, 2017, 3:25 PM GMT+3
Selcan Hacaoglu

• Officials of both nations discussed gas cooperation last week
• Negotiations over creating a new federal Cyprus have collapsed

Turkey wants Israel to use its clout to push Cyprus into allowing a pipeline to pass through its waters so the region’s natural gas can be exported to Europe.

“Israel, as a dominant force in the region, could push Cyprus to agree to a compromise deal on the drilling of gas and construction of an export gas pipeline via Turkey” to the benefit of all sides, said Reha Denemec, an adviser to Turkish President Recep Tayyip Erdogan. Officials from both countries discussed possible cooperation on gas during a conference last week in Istanbul, he said. Israel’s Energy Ministry had no immediate comment.

Israel and Turkey patched up ties recently after years of diplomatic estrangement and are eager to advance an energy deal that would help transform Israel into a gas exporter and bolster Turkey as a key gas portal for European states. One key obstacle has been Turkey’s conflict with Cyprus, which has been divided since 1974, with northern Cyprus controlled by a self-declared state supported by Turkey. The latest round of United Nations-sponsored reunification talks faltered earlier this month.

Hot summer for gas - IN CYPRUS / CYPRUS WEEKLY

April 23, 2017

George Telaveris

While Cyprus waits for Total to start exploratory drilling for natural gas in offshore Block 11 in July, Israel is close to selling natural gas to Turkey, risking a flare-up over the right to send gas to Turkey through the Cyprus Exclusive Economic Zone (EEZ).

Israel energy minister Yuval Steinitz told Bloomberg in March that a deal between Israel and Turkey was expected in the coming months.

“The purpose is to conclude by this summer a government-to-government agreement on a gas pipeline stretching from Israel to Turkey, in order to export natural gas from Israel and also the vicinity, to Turkey,” Steinitz said.