Cyprus in talks with Gulf energy companies over natural gas licences, president says

Cypriot authorities are in talks with major energy companies from Persian Gulf states over potential natural gas reserves off the Mediterranean country's southern coastline, President Nikos Christodoulides told an energy conference Friday

NICOSIA, Cyprus -- Energy companies from Persian Gulf states have expressed interest in searching for natural gas off the southern coast of Cyprus, President Nikos Christodoulides said Friday.

Speaking at an energy conference in Nicosia, he said Cypriot authorities are in early talks with several unidentified companies regarding exploration licenses for some of Cyprus’ 13 areas, or blocks, inside an exclusive economic zone.

Those talks involve potential partnerships with Italy’s Eni, France's Total, ExxonMobil and Chevron, which already hold exploration licenses for 10 blocks.

ExxonMobil and partners Qatar Energy hold concessions in two blocks, Chevron partners with Shell for one, while a consortium comprising Eni and Total have seven.

“We encourage the involvement of other companies as well, other energy giants,” Christodoulides said. “It’s a vote of confidence for the potential of Cyprus’ exclusive economic zone, but there are many other political and diplomatic dimensions.”

At least five natural gas deposits have been discovered inside Cypriot waters – three by the Eni-Total consortium, one by ExxonMobil and another by Chevron, which is estimated to hold some 4.2 trillion cubic feet of gas.

Christodoulides said a development plan for one of the Eni-Total gas fields, which is estimated to hold 2.5 trillion cubic feet of gas, is expected to be completed “soon.”

Regarding work currently underway to complete a 1.9 billion euros ($2.1 billion) undersea electricity cable linking Cyprus with Greece, Christodoulides said Cypriot authorities are in talks with the United Arab Emirates over joint investment.

The 1,000 MW cable, which has received 657 million euros ($694 million) of funding from the European Union, aims to cut Cyprus’ electricity costs and end its energy isolation.

Christodoulides said EU backing for the project is in line with the bloc’s aim to achieve energy price parity in all member states by 2030.