http://biz.yahoo.com/ap/070215/cyprus_oil.html?.v=3

Cyprus Launches Oil Exploration Bids

Thursday February 15, 9:48 am ET
By George Psyllides, Associated Press Writer

NICOSIA, Cyprus (AP) -- Cyprus' government opened a bidding process Thursday 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 -- covering 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 a breakaway Turkish Cypriot state in the north, 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 U.N. 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 Thursday's ceremony, promised close cooperation with Cyprus.

"I assure you that the Egyptian Ministry of Petroleum is fully committed to work very close with the Cypriot side, offering all necessary support and experience, to help Cyprus achieve its oil and gas future plans and objectives," Fahmy said.

French petroleum consultant Beicip-Franlab, which analyzed the seismic survey data, said it was encouraged by the results.

"We are pretty sure that there are active petroleum systems presently in existence in the area," Beicip-Franlab's Lucien Montadert said.

The bidding process ends July 16.

are we going to become rich as a country?lol...and wow!!!as far as i know some newspapers reported that the oil and gas will not be for export,but only for local use. this will save the goverment some 400million cyprus pounds a year according to them....

Sounds good. Imagine 400 million CP per year. Great!

They need to tie in a foreign company to this, preferably not American or British. Chinese, French or Arab maybe. In order to help them politically against certain agitators.

Let's hope that they area is divided into 5 countries, China, Russia, UK, USA and France. Saving 400 million a year could mean a great deal. Fund the ageing population, investments in rural areas etc. Let's hope that everything turns alright!

http://www.athensnews.gr/athweb/nathens.prnt_article?e=C&f=13220&t=01&m=A10&aa=1


The new Cyprus controversy: oil

Cyprus is inviting offers to exploit billions of barrels of offshore oil,heating up the controversy over the economic isolation of Turkish-Cypriots

GEORGE GILSON

THE CYPRIOT government has raised Turkish ire by issuing an international tender for oil and gas exploration off its southern coast.

The offshore-licensing tender begins on February 15 and industry giants such as BP, Exxon and Mobil have shown an interest, requesting seismological data prepared by Oslo-based Petroleum Geo-Services (PGS), an oil-prospecting company.

Offshore oil and gas resources surrounding Cyprus in the past have been reportedly estimated at six billion to eight billion barrels, worth about $400 billion :eek: :eek: at current market rates. But there are no reliable figures.

Turkey has filed a demarche with the Lebanese government over an agreement signed by Cyprus and Lebanon on January 19 to divide the sea area between the two countries into exclusive economic zones. Egypt was also warned not to pursue a similar deal it had signed with Cyprus previously.

"Turkey is determined to protect its rights and interests in the Eastern Mediterranean and will not allow attempts that would erode them," the Turkish foreign ministry said in a statement

The Turkish military denied a report by Agence France Press on February 1 that it had sent warships towards Cyprus in response to the deal.

The Greek government weighed in to accuse Ankara of violating international law by attempting to interfere with Cypriot exploration plans.

"(It) is in total contradiction with international law and the right of sovereign government to negotiate international agreements," foreign ministry spokesman George Koumoutsakos said.

The accord was signed after secret yearlong negotiations by Cypriot Foreign Minister George Lillikas and Lebanese Public Works Minister Mohammed Al-Safadi (Nicosia agreement with Egypt was signed in 2005, and Egypt has just conducted a drilling in its economic exploitation zone).

Cypriot President Tassos Papadopoulos pointed out that the sea area in question is to the southeast of the island republic, which lies at the underbelly of Turkey, and not between Cyprus and Turkey. "In all cases when we start negotiations, Turkey's presence is strong, and this is why it is best that something goes forward before it is made public," Papadopoulos said, explaining the confidentiality of Lebanon-Cyprus negotiations.

Turkey argued that it should have been consulted before any agreement because Cyprus also has "a Turkish area". :lol: :lol: A 1974 invasion by Turkey carved a Turkish-Cypriot self-styled state in the northern third of the island, which remains internationally unrecognised.

Publicly, it was Turkish-Cypriot leader Mehmet Ali Talat who initially questioned the legitimacy of Cyprus' right to exploit exclusively the island's offshore oil resources.

In a statement issued on January 29, spokesman Hasan Ercakica declared that "the attempt of the Greek-Cypriot side to sign agreements with neighbouring countries is unacceptable". :hahaha: :hahaha: :spam1: The statement echoed Talat's earlier thinly veiled threats that Cyprus' oil exploitation deals would cause "tensions" on the island.

Cypriot government spokesman Christodoulos Passiardis replied that the government merely exercised its inalienable sovereign rights. He called Talat's warning a "ridiculous, knee-jerk reaction unworthy of comment".

The Cypriot government says any inter-communal sharing of natural resources is contingent on a political settlement between the two sides. A United Nations reunification plan was overwhelmingly rejected by Greek-Cypriots in April 2004. Turkish-Cypriots accepted it.

Since then the European Union, which admitted Cyprus divided a month later, has tried to forge a relationship with the unrecognised government in the north.

In the latest twist, Nicosia has reacted sharply to a draft European Parliament report that recommends giving elected officials of the occupied northern Cyprus regime observer status in the European Parliament. It calls for directs talks with Talat and calls for direct trade with the occupied north as a means to end Turkish-Cypriot "isolation".

Cypriot Europarliament members are stirring up opposition to the report. Conservative MEP and former Cypriot foreign minister Yannakis Cassoulides said he intends to lobby the European Popular Party.

Cypriot MEPs see this, like a similar effort they thwarted about two years ago, as an effort to upgrade the status of the occupation regime.

The Cypriot government maintains that all Turkish-Cypriots are entitled to Republic of Cyprus passports, granting them the benefits of EU membership. The Republic of Cyprus has also extended free healthcare to Turkish-Cypriots regardless of means, a measure that has led to charges of discrimination by wealthier Greek-Cypriots who do not enjoy such benefits. :cheers: :cheers:



In conclusion, ai g..... vlakes......

Facts: The Republic of Cyprus the only internationally recognised state and it has the right to explore and make use of its natural resources. Turkey can do nothing about it. The country's typical threat of war was an effort to make a hole in the water because now Cyprus is an EU member. And their tactic of also launching explorations just shows how panicked they are of this massive change in the balance of interests for foreign countries when it comes to Cyprus.

I am stunned by the estimated amount of money there is sitting there. Even half the estimate would be huge for Cyprus.