THE ELECTRICITY Authority of Cyprus (EAC) could be the first customer to receive natural gas from partners Noble and Delek, currently drilling for hydrocarbon deposits in Israel’s offshore fields.
The EAC met with representatives of Noble and Delek in Nicosia yesterday in a “very good climate”, releasing a statement after saying that all three were ready to cooperate in the field of natural gas.
“The role of the EAC is considered by the two companies as very important, since the EAC will be the most important and perhaps, at first, the only consumer of natural gas,” the EAC announcement said.
“The EAC has a particular interest in the earliest possible arrival of natural gas to Cyprus, which will be used by the two combined cycle power units four and five at Vassilikos power station, which according to estimates will be operational by next summer,” it added.
The authority stressed once again “the imperative need for immediate decisions to be taken that will lead to the arrival of natural gas to Cyprus without further delay”.
Both Noble and Delek operate in the field of drilling and commercial exploitation of natural gas. Texas-based Noble Energy also has a concession to drill in Cyprus’ Exclusive Economic Zone (EEZ) in Block 12, which it intends to start by the end of the month. Block 12, or the Aphrodite field, sits across Israeli’s Leviathan field, believed to be rich in deposits, where Noble and Delek have already begun drilling.
Cyprus is considering purchasing any natural gas extracted from Israel’s fields, at least initially, until extraction of its own deposits is possible.
Israeli-based Delek and Avner have also reached an agreement with Noble for a licence on its Cypriot concession where Delek and Avner will bear 15 per cent of Noble’s expenditures for Block 12. The Cypriot authorities have until August 1, 2013 to approve the transfer of rights.
The EAC noted that various techniques and other issues were examined yesterday in relation to the import of natural gas to Cyprus, so that both sides were better prepared in the event that cooperation became possible.
Exploratory drilling in Israel and Cyprus’ respective EEZs has been challenged in recent days by Turkish Prime Minister Recep Tayyip Erdogan who has gone as far as to threaten using Turkish warships in the eastern Mediterranean to prevent exploitation of both countries’ natural gas reserves.
According to Cyprus News Agency, a British foreign office representative said yesterday: “The UK recognises the rights of the Republic of Cyprus in its Exclusive Economic Zone, as do all states who have signed the UN Convention on the Law of the Sea.
The British official added: “The exploration of gas reserves has the potential to benefit all Cypriots. We hope that it can be managed to support the efforts to achieve real progress toward a lasting settlement in the current talks.”
Foreign Minister Erato Kozakou-Marcoullis discussed the issue of Turkish threats on the sidelines of the EU Council of Foreign Ministers in Brussels. According to a foreign ministry statement, Marcoullis had a series of contacts with her counterparts, informing them of Turkey’s threats against exploration and seeking their intervention to prevent Turkey from taking any action in the eastern Mediterranean, which would end up being the nail in the coffin of Turkey’s EU accession prospects.
Meanwhile, speaking during a press conference in Thessaloniki at the weekend, Greek Prime Minister George Papandreou said the exploitation of natural resources by Cyprus and Israel was their sovereign right, adding “this is a clear message to Turkey”.
