Sitting on $400 billion of oil reserves?
Cyprus Mail
It's estimated that oil and natural gas reserves in the seas surrounding Cyprus amount to six to eight billion barrels, currently worth around $400 billion. That is 60 times the annual budget of Cyprus.
That was the verdict of former Foreign and Commerce Minister, Nicos Rolandis, who said yesterday: "there must be oil on our side". It was under Rolandis' tenure as minister that the possibility of such reserves first began to be explored.
Egyptian Oil Minister Amin Sameh Samir Fahmi has just concluded an official visit to Cyprus, where the two countries signed a Memorandum of Understanding on energy matters, meaning Egypt will assist Cyprus to utilise its reserves by offering its expertise on oil and gas exploration.
Fahmi also met with House of Representatives President Demetris Christofias, who said, "in two years you will be hearing some very good news on this co-operation."
Commerce Minister George Lillikas was equally pleased. "The agreement we signed is very important, since we will co-operate with a friendly country that is willing to give us its experiences and co-operate with us in all aspects concerning oil and natural gas. There are many issues we would like to talk about in public about our co-operation with Egypt. I will say that things have been set in motion and we hope that in the near future there will be developments."
Egypt's oil ministry said an agreement to export liquefied natural gas to Cyprus had been signed but Lillikas said he did not wish to delve into details.
Rolandis noted that "50 per cent of Egypt's offshore reserves are in the sea, so why should oil not be found in Cypriot waters?"
The eastern Mediterranean is an area containing oil and natural gas deposits. This significant underwater resource is being exploited by certain countries in the region that have awarded licensing rights for prospecting, exploitation and production of oil to major corporations such as ExxonMobil, Shell, BP, British Gas, TotalFinaElf, El Paso and AGIP. There is significant ongoing activity in the region, with some of the oil majors who control a large part of world oil reserves.
Cyprus is an exception, not having become adequately involved in this all too important field, thereby potentially missing out on an economic boom and an important boost to the people's prosperity.
In the past, there have been numerous explorations (satellite imagery, seismic and geological studies) of Cyprus' exclusive economic zone. These studies all provide very positive clues. The island is located at the northernmost tip of the African plate, which in the Middle East area contains 65 per cent of world oil deposits.
Rolandis added that "2 and 3-D geological surveys now need to be carried out, with the government then probably asking for bid rounds or tenders. Special outside technological help will be needed as the water in question is two kilometres deep."
But he warned that Turkey, "who have been making threatening noises on the matter, could throw a spanner in the works. They want to protect Turkish Cypriot interests, so the big oil majors will think twice about getting involved in helping Cyprus, as they want to avoid areas of political or military hazard."
But he said the problem could be solved through careful and reasonable handling, to the benefit of all Cypriots, both Greeks and Turks. "And so whereas oil is often a cause of war elsewhere, in our case, it could become an incentive for reaching a settlement on Cyprus, for permanent peace, stability and an immense improvement of all Cypriots' economic status."
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