Italian oil major ENI hinted on Thursday they were backing out of Cyprus’ offshore block 3 for the time being, while Turkey again served notice that, absent a comprehensive settlement of the Cyprus problem, it would not allow Greek Cypriots to ‘unilaterally’ exploit oil and gas resources around the island.
Speaking on the sidelines of an event in Milan, ENI’s CEO Claudio Descalzi said it was “very likely” the drillship contracted by his company would have to be moved to a new location – possibly Morocco – in coming days.
“Then we’ll come back, waiting for international, European, Turkish, Greek and Cypriot diplomacy to find a solution,” he said.
But this did not mean ENI were relinquishing their interests in the area.
“We’re used to having potential disputes … we did not pull out of Libya or other countries where there were complicated situations,” Descalzi said.
His remarks come two weeks into a standoff in block 3 of Cyprus’ Exclusive Economic Zone (EEZ) after Turkish warships, ostensibly participating in naval wargames, interdicted a rig while en route to drill an exploratory gas well.
Due to the Turkish blockade, the Saipem 12000 drillship, contracted by ENI, has since been immobilized at a distance of some 50km from the drilling site dubbed Cuttlefish.
Other than the interrupted drilling at the Cuttlefish site, ENI are contractually obligated to drill two more exploratory wells in any of their concessions in blocks 2, 3 and 9.
The blocks in question are disputed by the Turkish side, which claims they form part of the breakaway regime’s own ‘EEZ’.
Turkey does not recognise the Republic of Cyprus, nor therefore that Greek Cypriots are entitled to an EEZ or a continental shelf.
On Thursday evening, President Nicos Anastasiades met in Brussels with President of the European Council Donald Tusk, briefing him personally on Turkey’s actions in the Cypriot EEZ.
Government sources told the Cyprus News Agency (CNA) that Tusk shared the view on the need for an EU reaction to the Turkish actions.
Anastasiades also briefed Greek prime minister Alexis Tsipras on developments in the EEZ.
The contacts were ahead of an informal EU27 summit on Friday, where the president will be briefing his counterparts on Turkey’s activities.
On the summit’s sidelines, Anastasiades will also be meeting separately with French leader Emmanuel Macron.
Turkey’s energy minister Berat Αlbayrak meanwhile stated that Ankara would continue to exert influence in the region as long as the Cyprus issue remained unresolved.
“Turkey shall not allow the creation of a fait accompli in the eastern Mediterranean,” Albayrak said.
“If you [Greek Cypriots] try to create a fait accompli, we shall not allow it.”
Echoing Albayrak, Turkish Cypriot ‘foreign minister’ Kudret Ozersay rejected the formula devised by the Greek Cypriots, namely that they are the caretakers of the island’s natural resources until such time as the island is reunified.
“The two nations [in Cyprus] are co-owners of the natural resources,” Ozersay was quoted as saying.
“If something belongs to two joint owners, it follows that you [Greek Cypriots] cannot be the sole owners of this wealth. You cannot license certain companies and continue on this path on your own.”
Ozersay stressed that whereas Turkish Cypriots are ready to discuss their share of any hydrocarbons proceeds, they will not allow the Greek Cypriot side to determine what that is.
The Turkish Cypriots should be part of the process from start to finish: from exploration, to extraction, and lastly monetization of gas reserves.
Meantime reports persisted that Ozersay had held contacts with ENI officials earlier this week.
It was initially claimed that on Monday Ozersay met in Rome with ENI’s Descalzi, forcing the company to later issue a statement denying any contact.
Ozersay on Thursday confirmed that he had visited “a European capital” to discuss energy-related issues – from which it could be inferred that he travelled to Rome.
He declined to provide more details.
Fresh reports in Turkish Cypriot media claimed that Ozersay did not see Descalzi, but rather ENI’s vice president Lapo Pistelli, and that the meeting had been brokered by the Italian foreign ministry.
If so, that would be embarrassing to Nicosia, given that people from ENI – part-owned by the Italian state – were meeting with officials from the breakaway regime, which is not internationally recognised.
For his part, outgoing foreign minister Ioannis Kasoulides said Nicosia was given assurances that no meeting took place between ENI and Ozersay.
Other reports suggested that Nicosia may have been outmanoeuvred diplomatically: Turkey’s foreign minister Mevlut Cavusoglu met his Italian counterpart on February 13 in Kuwait, where the two are said to have discussed ENI’s exploration plans in Cyprus’ EEZ.
That meeting was held at a time when the first Turkish Navtex – reserving an area for military exercises in block 3 – was already in force.
Citing diplomatic sources, the Athens News Agency reported that the February 13 meeting in Kuwait set the stage for back-channel contacts between the Turkish side and the Italians, culminating in Ozersay’s trip to Rome.
In an interview with the Cyprus News Agency, foreign minister Kasoulides said Cyprus would await the outcome of the informal European council before deciding its further actions on the diplomatic scene.
“You understand that we must react,” Kasoulides said, alluding to Turkish actions in Cyprus’ economic waters.
“I would like to reiterate that Cyprus shall not consent to the upgrading of the customs union between Turkey and the EU, and shall not consent to the visa liberalisation sought by Turkey, and of course we shall not consent to the opening of any [accession] chapters.”
