‘Big players’ show interest in second licensing round’

By Elias Hazou Published on November 25, 2011

NICOSIA is ‘definitely’ interested in energy cooperation with neighbouring Israel, the government spokesman said yesterday after Israel’s deputy Foreign Minister Danny Ayalon proposed making Cyprus and Greece distribution centres for Israeli gas to Europe.

Stefanos Stefanou was responding remarks Ayalon made during a visit to Greece earlier this week.

“We’re going to talk about making Greece and Cyprus distribution centers for Israeli gas to Europe, which needs to diversify its sources,” Ayalon was quoted as saying ahead of meeting Greek officials.

Asked at a news briefing in Athens about Israel's reaction to a threat by Turkey regarding drilling in Cyprus, Ayalon said: “If anyone tries to challenge these drillings, we will meet those challenges.”

He added that he did not think Turkey would challenge any drilling in the southeast Mediterranean. Turkey said last month it would send naval forces to protect its drilling rights.

In Nicosia, the government spokesman yesterday declined to comment on Ayalon’s remarks over Cyprus becoming a distribution hub for Israeli gas.

But he added: “It is a well-known fact that talks are underway between Cyprus and Israel and we are in touch, the aim being to achieve cooperation and synergies with Israel in the field of energy. This is something which, definitely, is of interest to the Republic.”

On Wednesday, the Cabinet gave the green light for the launch of the second licensing round for offshore oil and gas exploration.

Responding to questions, Stefanou said that some of the companies buying seismic data on the Cypriot offshore plots include big players, but he declined to name names:

“It remains to be seen,” he said, “how this interest translates into an interest by these companies to submit offers on the plots within Cyprus’ Exclusive Economic Zone.”

Citing its sources, the Cyprus News Agency reported that several companies, including oil giants, have their eye on Cypriot gas prospecting.

These include, according to the agency, Petrobras, ExxonMobil, BP, Shell, Petronas and Gazprom.