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Tuesday, 02 December, 2008, 22:10 GMT | more >>

Cyprus launches exploration round



By Upstream staff 

Cyprus launched an international licensing round today for offshore exploration of oil and gas amid opposition from neighbouring Turkey, with which it has been at odds for decades.

The round is a competition to acquire existing seismic data from 11 exploration blocks lying south and south-west of Cyprus towards Egypt. The procedure ends on 16 July and companies will then be able to bid for exploration rights.

Nicosia's plans have drawn opposition from Turkey and the Turkish Cypriots that Ankara supports in the northern breakaway third of Cyprus.

They fear Greek Cypriots, who run the island's internationally recognised government, could claim all potential benefits from hydrocarbon exploration for themselves.

Turkey on Tuesday said its oil company, Tpao, could issue tenders for international partners to search for oil in the Mediterranean and Aegean.

There is no exploration now in the immediate vicinity of Cyprus, divided by a Turkish invasion in 1974 triggered by a brief Greek-inspired coup.

The island is now heavily reliant on imported heavy fuel oil, which fires its power grids and represents about 92% of its energy usage.

Authorities have in the past said preliminary data points to the existence of hydrocarbons, but say it could take years for any discoveries to become commercially viable.

The procedure starting today involves making available seismic data covering about 70,000 square metres over the Eratosthenes structure, a sea mount south of Cyprus, the Levant basin and the prolific Nile Delta.

The data on offer is two-dimensional, giving less information than more sophisticated material.

Cyprus will offer successful applicants exclusive exploration rights over the exploration blocks.

If a commercial discovery is made, production would be shared between the licensee and Cyprus under a production sharing contract, Reuters reported.


Thursday, 15 February, 2007, 09:17 GMT  | last updated: Thursday, 15 February, 2007, 09:17 GMT

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