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Cyprus negotiating with Gulf energy firms for natural gas permits, says president

NICOSIA, Cyprus — President Nikos Christodoulides announced that energy firms from Persian Gulf nations have shown interest in exploring for natural gas in the waters off southern Cyprus. Speaking at an energy conference held in Nicosia, he mentioned that discussions are ongoing with several unnamed companies regarding the issuance of exploration licenses for some of the 13 designated areas, or blocks, within Cyprus’ exclusive economic zone.

These negotiations may lead to collaborations with well-established firms such as Italy’s Eni, France’s Total, ExxonMobil, and Chevron, all of which currently possess exploration licenses for a total of 10 blocks. ExxonMobil, along with partners Qatar Energy, has rights to two blocks, while Chevron has partnered with Shell to explore one block. A consortium formed by Eni and Total is engaged with seven blocks in total.

Christodoulides expressed enthusiasm about welcoming additional companies into the fold, emphasizing that this interest reflects a vote of confidence in the potential of Cyprus’ exclusive economic zone. He added that the situation has many other political and diplomatic implications that must be considered.

In the Cypriot waters, at least five natural gas deposits have been unearthed: three by the Eni-Total consortium, one by ExxonMobil, and one by Chevron, the latter is estimated to contain approximately 4.2 trillion cubic feet of gas. Additionally, the President noted that a development plan for one of the gas fields operated by Eni and Total, which is projected to hold around 2.5 trillion cubic feet of gas, is expected to be finalized “soon.”

Moreover, he discussed ongoing efforts to complete a significant undersea electricity cable project, with a budget of 1.9 billion euros ($2.1 billion), which will connect Cyprus to Greece. Christodoulides revealed that discussions are underway with the United Arab Emirates regarding potential joint investments in the project. This 1,000 MW cable has already received substantial funding, totaling 657 million euros ($694 million), from the European Union.

The primary objective of this initiative is to lower electricity costs in Cyprus and eliminate its energy isolation, aligning with the EU’s broader goal of achieving equal energy prices across all member states by 2030, as stated by Christodoulides.

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