International oil companies submit today their tenders for a license to search and exploit possible hydrocarbon reserves in the Cyprus’ exclusive economic zone.
Permanent Secretary of the Ministry of Commerce, Industry and Tourism, Efstathios Hamboullas, told CNA today that the submission of tenders began at 0800 and will be concluded at 1430 (local time) at the Ministry.
Interested companies will express their interest in exploring possible oil or natural gas reserves in any one of the eleven exploration blocks at sea, lying south and southwest of Cyprus.
Hamboullas told CNA that eight international companies have asked and received data, prepared by the government of Cyprus, relating to this issue.
“Eight international companies have asked and received the data we have prepared but six have bought all data prepared by the Republic of Cyprus, including geophysical and seismological surveys and the evaluation of the two-dimensional research conducted in the area”, he said.
The evaluation of the applications is expected to be concluded before the end of the year and then the government will make the final decision.
“We expect that the government will take its final decision before the end of the year. The decision will name the companies awarded the tenders, the terms and conditions of the tenders and the exploration blocks allocated to the wining companies,†he explained.
Hamboullas said that next year the second phase would follow, which would include the remaining two exploration blocks, for which a three dimensional survey is being conducted.
Experts commissioned by the Cypriot government said the exploration blocks cover 70,000 sq km in extent and indications are encouraging for hydrocarbon reserves at depths ranging from 400 to 3,000 meters.
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.
The licensing round is taking place amidst strong protests from Ankara.
Turkey, which invaded in 1974 and continues to occupy one third of Cyprus’ territory, is the only country in the world which does not recognise the Republic of Cyprus.
The Government of Cyprus has repeatedly stressed that Nicosia acts in line with international law and the Convention of the Law of the Sea and stated that Turkey’s reaction to this has no justification.
