Cyprus attracts major Oil and Gas companies in its Exclusive Economic Zone

Christopher Zenios03/08/20193min
The energy sector of Cyprus is evolving thanks to the natural gases that have been discovered in recent years. This has attracted major oil and gas companies from around the world and so drilling plans have been placed for the years to come.

These oil and gas companies have invested heavily in the Eastern Mediterranean sectors and now they plan to move into production and become a key energy hub in the region.

Cyprus’ Strategic Position on the Map

The oil and gas sector of Cyprus has become a very big opportunity for foreign companies to invest even deeper following the discovery of the natural gas reserves in the island’s Exclusive Economic Zone (EEZ) and in the immediate neighbourhood.

The location of Cyprus in the southeastern Mediterranean makes it a well suitable fuel hub and an interconnection node that connects the electricity grids of the Eastern Mediterranean and North African nations to those of Europe.

The Major Oil and Gas Companies Involved

Cyprus in one way or another has attracted foreign companies to the island. Now with the discovery of the abundant natural gases, the island’s ambition has been strengthened to become a vital hydrocarbons player in the sector, with the involvement of major international oil and gas companies in the EEZ.

Cyprus has completed some of their offshore licensing rounds and awarded the majority of its offshore blocks to some of the world’s top oil and gas companies. Some of which are ENI (Italy), Kogas (South Korea), Total (France), ExxonMobil (USA), Noble Energy (USA), Petroleum (Qatar), Delek Group (Israel) and Shell (Nederlands) have all secured exploration rights in Cyprus’ EEZ.

According to multiple sources, the cabinet approved the licensing of different items to multiple oil companies and their percentages. The license of item 7 was granted to ENI and Total consortium of 50-50 and the entry to Total into other parts of which ENI was operating. Block 2, where Total enters 20% and Block 3 where it enters 30%, Block 8 it enters 40% and Block 9 Total enters 20%. The Italian ENI enters 100% in block 8.

The Cyprus Minister of Energy, Mr Giorgos Lakkotrypis mentioned that a 12-month extension was granted for Blocks 2, 3, 8, 9 and 11. As regards Blocks 2, 3 and 9 of which ENI had 80% and Kogas 20%, Total will receive the percentages from ENI.

The Energy Future for Cyprus

Cyprus is in a position now to strengthen its role now as a stable and practical location in which to base energy infrastructure projects and headquarters for companies around the world. Along with the backing of the European Union and business operating environment, Cyprus has advantages to establish itself as mentioned before as a strategic player. The promising potential of developing oil and gas sector offers big opportunities for international investors and will also allow Cyprus to reach into the future of energy with great confidence.

Christopher Zenios

Christopher has always been a pioneer, a first adopter when it comes to technological advancements. Over the years, his expertise surrounded the real estate and digital markets and their evolution in today's society. After being the editor to various professional business news portals and blogs, he was selected to become the chief editor for HWC. Contact Christopher at +357-22029786 ext: 6110 or by email at [email protected] for editorial related questions.

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