* Turkey provokes with east Med exercises *
Cyprus and Israel discussed future energy cooperation during a visit by Israeli Prime Minister Benjamin Netanyahu on Thursday, as Turkey warned the island that it risked stoking tension by trying to tap offshore gas.
Production in the eastern Mediterranean is set to soar after the discovery of huge offshore reserves between Israel, Cyprus and Lebanon that have sparked competing maritime claims by Turkey as well.
In December, Texas-based Noble Energy, which is working with both countries, reported an offshore gas prospect of between 5 and 8 trillion cubic feet (tcf) in a Cypriot field. The nearby Leviathan gasfield within Israel’s exclusive economic zone (EEZ) holds twice as much reserves and is a year ahead in production plans.
Turkey, which invaded north Cyprus in 1974, challenges the island's jurisdiction to explore. On Wednesday, Ankara said new exploration attempts by Nicosia could escalate tension in the region.
Relations between Israel and Turkey, once close allies, have been strained in recent years, but Netanyahu appeared to have no inclination to get dragged into Ankara's row with Cyprus.
"I came here to develop our bilateral ties, our economic ties in the field of energy," he said after talks with Cypriot President Demetris Christofias.
The two states were looking at a gas-sharing agreement to exploit reserves which fall on the maritime boundary between them, and gas delivery methods, he said.
"We are interested in developing peaceful relations for the benefit of the two countries and of the region as a whole. We have no ulterior motives and no hidden motives."
Another project that has been proposed to both leaders is a 540-nautical mile subsea cable to be built by Cyprus-based DEH-Quantum Energy at a cost of 1.5 bln euros and will transport electrical energy from Israel to western Europe.
TURKEY
Ankara said on Wednesday that Greek Cypriots were encroaching on Turkey's continental shelf in declaring a new hydrocarbons licensing round that opened on February 11 for 12 offshore blocks. They all rim the southern part of the island.
"Turkey .. will take all necessary measures to protect its rights and interests in the maritime areas falling within its continental shelf," the foreign ministry said.
Ankara has urged Greek Cypriots to scrap their exploration plans pending a reunification deal on the island. Reunification talks are under way and United Nations mediators are keen for a deal this year, preferably before Cyprus takes on the presidency of the European Council on July 1.
Cyprus says it is within its rights to explore for hydrocarbons, even while the island remains divided.
"It is not we who threaten Turkey, but Turkey which threatens us," said Christofias. "This is the problem. Turkey is the troublemaker, and not the cooperation between Israel and Cyprus."
