Cyprus announces discovery of off-shore oil ....
Cyprus Launches Oil Exploration Bids
Dow Jones Newswires Thursday, February 15, 2007
NICOSIA Feb.15, 2007 (AP)
Cyprus' government opened a bidding process Thursday to license offshore
oil and gas exploration, despite strong objections by Turkey.
The venture has threatened to revive tension in the region, where
contested sea boundaries also exist between neighbors Greece and Turkey.
The first round of licensing involves 11 offshore areas totaling around
60,000 square kilometers in the south, southeast and southwest of the
island, the government said.
"So far, many companies from many different countries have shown
interest," Trade and Industry Minister Antonis Michaelides said. They
include major companies involved in oil exploration and drilling, he
said, but didn't give other details.
Norwegian company PGS Geophysical AS already has completed a
two-dimensional seismic survey of the area - covering some 70,000 square
kilometers to the south, southwest and southeast of Cyprus.
Turkey had warned Cyprus not to search for oil and gas in the area,
where it said it also has legal rights and interests. Ankara insists
Turkish Cypriots should have a say in the island's oil and gas rights.
Turkey does not recognize the Greek Cypriot government on the divided
island, and backs a breakaway Turkish Cypriot state in the north, where
it maintains 35,000 troops.
Cyprus signed a deal with Lebanon last month to mark out sea boundaries
and facilitate future oil and gas exploration. It has a similar deal
with Egypt. Turkey has warned both countries not to proceed with the
But Egyptian Petroleum Minister Amin Sameh Samir Fahmy, who attended
Thursday's ceremony, promised close cooperation with Cyprus.
"I assure you that the Egyptian Ministry of Petroleum is fully committed
to work very close with the Cypriot side, offering all necessary support
and experience, to help Cyprus achieve its oil and gas future plans and
objectives," Fahmy said.
French petroleum consultant Beicip-Franlab, which analyzed the seismic
survey data, said it was encouraged by the results.
"We are pretty sure that there are active petroleum systems presently in
existence in the area," Beicip-Franlab's Lucien Montadert said.
The bidding process ends July 16.
Nick says .... the discovery of oil reserves is likely to fuel any
country's economy, which will have a knock on and positive impact on
property prices. Cyprus is already a tax haven for high net worth
individuals, and the advent of oil and gas industries will only bring
more highly skilled workers to the island to staff new oil-related
businesses. This should create more demand for rental properties on a
local level, and, as these people are high income earners, their money
will also fuel house prices in the up-market end of the sector. Cyprus
is a country rich in history and culture, and now it will enjoy riches
of a more material kind with the discovery of "black gold".
For any other information on investing in Cyprus, please drop me a line email@example.com