Cyprus Launches Bidding Process for Oil Exploration (16/02/2007)

Παρ, 16 Φεβρουαρίου 2007 - 11:07
The Republic of Cyprus opened a bidding process yesterday to license offshore oil and gas exploration, despite strong objections from Turkey. The venture has threatened to revive tensions in the region where Greece and Turkey contest sea boundaries. The Turkish Foreign Ministry called on prospective bidders to «act with common sense.» «Insisting on the tender process would affect peace and stability on Cyprus and in the eastern Mediterranean,» a ministry statement said. The first round of licensing involves 11 offshore areas totaling around 60,000 square kilometers (23,000 square miles) in the south, southeast and southwest of Cyprus, the government said. «So far, many companies from many different countries have shown interest,» Trade and Industry Minister Antonis Michaelides said. They include major companies involved in oil exploration and drilling, he said, but did not give further details. Norwegian company PGS Geophysical AS already has completed a two-dimensional seismic survey of the area, which covers some 70,000 square kilometers (27,000 square miles) to the south, southwest and southeast of Cyprus. Turkey has warned Cyprus not to search for oil and gas in the area, where it said it also has legal rights and interests. Ankara insists that Turkish Cypriots should have a say in the island's oil and gas rights. Turkey does not recognize the Greek-Cypriot government on the divided island, and backs the Turkish-occupied north of Cyprus, where it maintains 35,000 troops. “Since the Greek-Cypriot administration does not represent the entire island, it has no authority to sign deals on behalf of the Turkish Cypriots,» the Turkish Foreign Ministry statement said. It called on companies and countries who might be interested in the venture «to act with common sense concerning the sensitivity of the Cyprus problem» and not to harm efforts to find a solution within the framework of the United Nations. The Mediterranean island has been divided since Turkey invaded the north in 1974, after a failed coup by supporters of union with Greece. A UN peace blueprint was rejected by Greek Cypriots, and approved by Turkish Cypriots, during simultaneous referenda in 2004. Cyprus signed a deal with Lebanon last month to mark out sea boundaries and facilitate future oil and gas exploration. It has a similar deal with Egypt. Turkey has warned both countries not to proceed with the deals. But Egyptian Petroleum Minister Amin Sameh Samir Fahmy, who attended yesterday's ceremony, promised close cooperation with Cyprus. «I assure you that the Egyptian Ministry of Petroleum is fully committed to working very closely with the Cypriot side, offering all necessary support and experience, to help Cyprus achieve its oil and gas future plans and objectives,» Fahmy said. (The Associated Press, 15/02/2007)