FORMER Attorney-general Alekos Markides yesterday accused the government of making a total mess of its aspirations of becoming a regional oil producer.
Speaking to the Mail, Markides said the administration’s handling of the affair was “flagrantly inefficient”.
He was commenting on the fallout from conflicting reports last week that Turkey had dispatched a military vessel in waters off the Cyprus coast – a move interpreted as teeth-gnashing by Ankara, which says Nicosia has no right to unilaterally exploit any oil reserves in the region.
“The fact that Turkey would attempt such a thing suggests they felt that the political climate was in their favour – which means it was not in ours. To me, that says the government did not take care of business beforehand,” said Markides.
The former AG said the administration made matters worse through unnecessary publicity.
The government is in the process of reaching agreements with most of its neighbours on the determination of exclusive economic zones (EEZs) before explorations can begin for possible deposits of oil and natural gas off the coast.
Previous studies have estimated that oil and natural gas reserves in the seas surrounding Cyprus amount to six to eight billion barrels, currently worth around $400 billion.
The area to be exploited would be divided into fields and tenders will be sought at an international level for the work that needed to be done.
Cyprus has signed agreements on EEZs with Egypt and Lebanon and is in the process of negotiating with Israel.
But Markides said that it was all still on shaky ground.
“Lebanon’s parliament has still to ratify the agreement. Will they, or will they back down because of pressure [from Turkey]? Also, where is Syria in all this? We supposedly had an agreement with them too, but now all of a sudden no one is talking about the Syrians.
“These are not good signs. Instead of making a big song and dance, the government should have covered all the bases – and quietly. You lay the foundations and then you make your move. What happens, for example, if Lebanon does not go along? That would punch a big hole in the whole arrangement, because you need to reach an agreement will all your neighbours,” he said.
Markides’ name came up recently in relation to a Memorandum of Understanding (MoU) signed between Cyprus and American company Crest in the late nineties. Neil Bush, the younger brother of US President George Bush, was the co-chairman of Crest at the time.
This information was cited by the Foreign Minister to give the impression that former Commerce Minister Nicos Rolandis had signed away the island’s oil and gas wealth in a secret deal with the Bush family.
Lillikas had also accused Rolandis outright of failing to consult either the Cabinet or the then Attorney-general Markides about the MoU.
Lillikas went on to say that when he succeeded Rolandis as Commerce Minister in 2003, the first thing he did was cancel the deal to “safeguard the interests of Cyprus”.
However, it has since emerged that the Rolandis-Crest MoU had nothing to do with oil and gas exploration off the island’s coast and everything to do with the importation of natural gas by pipeline from Syria.
In his defence, Rolandis explained that not only was the MoU not legally binding, but also that it would never have gone ahead. He said that eventually Cyprus decided against using a pipeline to transport natural gas, opting instead to import Liquid Natural Gas.
Rolandis went on to call Lillikas a “liar”. The Foreign Minister has yet to respond.
But Markides yesterday challenged the Foreign Minister to come clean.
“If Mr Lillikas indeed cancelled the deal, as he says, let him produce the letter to the company. I for one do not believe that he ever took such action. For one thing, the deal with Crest died a natural death.
“Secondly, how plausible is it for a US company to be importing natural gas from Syria in the aftermath of 9/11?”
Markides also offered the government some advice, saying the tenders should be scrapped.
“Worldwide, the oil business is a political matter par excellence. The government should handle the matter according to its discretion and, yes, according to political criteria. I for one believe the administration should ask Parliament’s approval to do away with the tenders. This is not the time or the place for tenders.”
Meanwhile at his daily news briefing, Government Spokesman Christodoulos Pashardis was asked about Lillikas’ uncharacteristic failure to respond to Rolandis.
But he stepped around a question as to whether Lillikas was about to apologise to Rolandis.
“The fact that Mr Lillikas avoided responding on his return to the island, does not mean he has difficulty in replying or that he refuses to do so.
“I assure you that, were you to meet with him today, he would readily give you his response,” added Pashardis.
