Early Cyprus solution will boost energy projects, say Anastasiades-Netanyahu

Israel has a strong interest in the resolution of the Cyprus problem, since this would greatly facilitate the pace of development for future energy projects, President Nicos Anastasiades and the Prime Minister of Israel Benjamin Netanyahu underlined in a joint statement, following their meeting on Sunday.

“In the context of the exploration and development of energy resources in the eastern Mediterranean, both leaders concluded that there is no question that resolving the outstanding issues between Cyprus and Turkey would greatly facilitate the pace of the development of future projects, which will proceed according to international law, as well as greatly enhance stability in the region.

“Therefore, Israel has a strong interest in the resolution of this issue,” it is noted.

It is also added that the two sides discussed the unitisation issue regarding the “Aphrodite” and “Yishai” gas fields, and concluded that by September 2016 the two Energy Ministers will seek to finalise these discussions.

The Jerusalem visit took place in the backdrop of a deal between Israel and Turkey to normalise their after several years..

bilateral

ties

Moreover, Cyprus has concluded a process for the submission of bids ahead of a third licensing round in the exclusive economic zone (EEZ). A total of six bids from eight companies were submitted - including companies from Israel - while the allocation of final licenses is awaited.

Israeli Delek Group Ltd announced Sunday that its gas and oil exploration units Avner Oil and Gas LP and Delek Drilling LP have bid for the Cyprus EEZ third licensing round for hydrocarbon exploration on blocks 6, 8 and 10. Delek is already a 30% shareholder in the license for Aphrodite gasfield in block 12 of the Cyprus EEZ.

According to “Globes”, winning such a bid would be synergistic to its operations in Israel’s offshore gas fields.

The bid by the Delek units was submitted as part of the Capricorn Oil consortium. Capricorn is the consortium’s operator and is a unit of Cairn Energy, which is traded on the London Stock Exchange.

The names of the interested companies and consortia will be announced next on Wednesday, after the Minister will have officially informed the Cabinet.