Cyprus launches first round for hydrocarbon exploration licenses

The Republic of Cyprus opened on Thursday the 1st Licensing Round Offshore Cyprus for the grant of hydrocarbon exploration and development licenses.
The official opening of the 1st Licensing Round Offshore Cyprus for the grant of hydrocarbon exploration and subsequent development licenses took place in Nicosia in the presence of Egyptian Minister of Petroleum Amin Fahmy, Cypriot Minister of Commerce, Industry and Tourism Antonis Michaelides, Minister of Foreign Affairs George Lillikas, Ambassadors of foreign countries in Nicosia, experts on hydrocarbon surveys, as well as representatives of interested companies.
The first round for the submission of applications began on Thursday and will end on July 16th. The interested companies will then submit their applications for further exploration in the 11 exploration blocks lying south and southwest of Cyprus towards Egypt.
Experts commissioned by the Cypriot government said the area covers 70,000 sq km in extent and the indications are encouraging for finding hydrocarbon reserves at depths ranging from 400 to 3,000 meters.
In his speech, the Minister of Commerce said that the Republic of Cyprus has signed an agreement on the delimitation of the exclusive economic zone with Egypt and Lebanon, based on the internationally accepted principle of the median line and in accordance with the UN Convention of the Law of the Sea.
“These agreements constitute an example of respect to the independence and the sovereignty of states, which is an element of modern political perception. Cyprus expects from the remaining neighbouring countries to show such modern political behaviour and formulate similar agreements,” he said.
Michaelides added that recent geophysical surveys in the region have proven to be successful and that this, in conjunction with the current high oil prices, makes the region a significant exploration target.
“Thus, the government of Cyprus considers that the time has come for Cyprus to embark on hydrocarbon exploration in its exclusive economic zone, an activity in which neighbouring countries are engaged for some decades,” he said.
In his opening speech, the Egyptian Minister of Petroleum described the event as an historic milestone towards achieving future energy stability for the current and future generations in Cyprus.
He reassured that Egypt is fully committed to work very closely with the Cypriot side offering all necessary support and experience, to help Cyprus achieve its oil and gas future plans.
The Egyptian Minister referred to the dialogue between Cyprus and his country “which resulted in a clear vision for future cooperation in the oil and gas sector, namely in the areas of exploration and development, gas export, knowledge and experience transfer in exploring frontier areas, model agreements and any other areas we believe together that are of interest to either party.”
In statements after the ceremony, the Cypriot Minister of Commerce said that many foreign companies, among them the biggest ones in the exploration and exploitation of hydrocarbon reserves, have shown their interest in the subject.
Invited to comment on Turkish reaction regarding Cyprus’ intentions, Michaelides said that the presence of Egyptian officials at the ceremony constitutes a signal that Egypt respects the international law and conventions regarding the exploration and exploitation of any reserves.
Commenting on the same issue, the Cypriot Minister of Foreign Affairs said that the presence of the Egyptian Minister and his entourage in Cyprus is a clear answer to the Turkish threats.
“The government of the Republic of Cyprus has acted in accordance with the UN Convention on the Law of the Sea and based on its sovereign rights,” Lillikas said.
He added that Cyprus could contribute to the EU need for more energy resources, which is one of the highest priorities for the EU.