Cyprus Starts Offshore Gas Drilling; Turkey Threatens to Intervene

Cyprus Starts Offshore Gas Drilling; Turkey Threatens to Intervene
Financial Mirror
Τρι, 20 Σεπτεμβρίου 2011 - 17:13
Cyprus has begun the process of exploratory drilling for gas south of its shores, its energy chief said on Monday, defying Turkey which has demanded it halt the work and threatened to carry out its own drilling north of the divided island.

Cyprus has begun the process of exploratory drilling for gas south of its shores, its energy chief said on Monday, defying Turkey which has demanded it halt the work and threatened to carry out its own drilling north of the divided island.
"It started late last night," said Solon Kassinis, director of the energy service. "It's preparatory work … but the procedure for drilling has started," he said, adding that the process will take 73 days.
Texas-based Noble Energy has exploration rights over the block, the first of 13 blocks that were auctioned three years ago and lie adjacent to Israel’s gas-rich Leviathan gas field.
Drilling has begun at a point where the water is about 1.6 kms deep, according to earlierreports.
Turkey disputes Cyprus’ authority in mapping out offshore sites for oil and gas exploration and says that the Greek Cypriot government cannot claim territories and that the move could upset peace talks with the Turkish Cypriots.
Earlier on Monday Turkey called on Cyprus to halt gas exploration work immediately and threatened that it would give naval escorts to Turkish exploration vessels off northern Cyprus operated by the Turkish oil company TPAO.
Energy Minister Taner Yildiz raised the stakes in the row after Cypriot President Demetris Christofias said on Sunday that drilling by Noble would start in days.
"The drilling work … is a provocation," Yildiz told journalists in Ankara. "We want the Greek Cypriots to halt immediately the work with Noble."
Turkey says any natural resources found offshore belong to both communities.
The row over ownership of any hydrocarbon reserves found off Cyprus erupted at a time of heightened tension in the area because of strained ties between Turkey and Israel.
Noble's Israeli partners, the Delek Group, have an option to participate in the Cypriot project.
The European Commission called on Monday for both sides to show restraint and work towards a resolution of the division of the island.
Turkey has warned the European Union that it will break off relations with the EU presidency should Cyprus take over the rotating role in the second half of next year.
The United Nations has appealed for a peaceful resolution to the dispute, saying both sides should benefit from any energy reserves that are found, in the context of a future settlement on the island.


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