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FACTDROP: Cyprus-Egypt hydrocarbons deal approved


Cyprus-Egypt hydrocarbons deal approved

Πηγή: Cyprus Mail
Jan 14 2012

THE HOUSE Foreign and European Affairs Committee yesterday approved an agreement between Cyprus and Egypt for the co-exploitation of possible hydrocarbon reserves in the area between the two countries respective Exclusive Economic Zones (EEZ).

The agreement is expected to be tabled before parliament next Thursday for ratification.

Committee chairman DISY’s Averof Neophytou said the agreement clarifies how revenue from potential hydrocarbon reserves in this area can be divided.

The EEZ of the two countries extends 200km out from their respective coastlines. In the event that hydrocarbons are found in the space in between, the spoils will be shared based on the agreement pending before parliament, said the DISY number two.

The agreement does not contain specific figures, as these will be calculated based on a case-by-case basis depending on the exact location of the reserves.

Regarding the second round of licensing for the remaining blocks in Cyprus’ EEZ, Neophytou called on the government to clarify the legal framework regarding a possible pipeline to Cyprus from the offshore fields before opening the round.

Opposition DISY leader Nicos Anastassiades said yesterday that Israel was studying relations with Cyprus and “will soon prepare a specific proposal for managing the volumes of natural gas located in the two countries’ exclusive economic zones”.

The party leader, who just returned from a visit to Israel where he was invited by Israeli officials, added that the proposal will also include Greece.

The proposal would create conditions for the safer management or co-management of hydrocarbons and cooperation in other sectors like research, commerce and tourism, said Anastassiades.

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