The Advisory Group of Experts on hydrocarbons is expected to hand to the government by the end of the week its proposal on establishing a state oil company.
This week the Group is holding a series of intensive meetings with the Ministerial Committee on hydrocarbons and other experts, focusing on developing and managing hydrocarbons in Cyprus.
Speaking after a meeting here today with President Demetris Christofias, Toula Onoufriou said the Group has been working on the contract that will constitute the basis of the allocation of blocks in Cyprus’ EEZ during the second phase of licensing and through which Cyprus' interests will be protected.
Regarding the second licensing round, Onoufriou recalled that the related documents have been sent to the EU to be translated for publication in the EU Official Journal and the next step will be finalising the contract documents. A second licensing round will be officially launched on completion of the translations and a period of at least three months will be given to the companies to express interest and submit their proposals.
According to Onoufriou the Group will hand to the government, by the end of the week, its proposals on how to set up a state oil company. It will constitute a comprehensive study on the advantages and possible disadvantages, on the basis of which the government act.
Cyprus President Demetris Chistofias announced on December 28, 2011, that exploratory drilling carried out by Huston-based Noble Energy in block 12 of the island's Exclusive Economic Zone revealed a gross mean average of 7 trillion cubic feet (TCF) of natural gas, describing the discovery as ''a historic development.''
Cyprus granted in October 2008 the exploration license for block 12 to US Noble, which began exploratory drilling on September 18
Turkey whose troops occupy Cyprus’ northern part since they invaded in 1974 does not recognise the Republic of Cyprus. Following a decision by Nicosia to begin natural gas and oil exploration in its exclusive economic zone, Ankara has signed an illegal agreement with the Turkish Cypriot regime in occupied Cyprus to delineate what it calls continental shelf.
The government of Cyprus has protested to the UN and the EU Turkey’s moves, saying it has a sovereign right to exploit its natural resources, pointing out that Greek Cypriots and Turkish Cypriots will benefit from any benefits that may come from oil drilling.
Cyprus has signed an agreement to delineate the Exclusive Economic Zone with Egypt and Israel with a view to exploit any possible natural gas and oil reserves in its EEZ. A similar agreement has been signed with Lebanon but the Lebanese Parliament has not yet ratified it.
UN-backed talks for a settlement to the Cyprus problem began on September 2008.
