http://www.setimes.com/cocoon/setimes/x ... portage-01Cyprus oil row could harm new peace efforts
03/09/2007
The stalled Cyprus peace process has been showing tentative signs of life, but a new quarrel over plans for oil exploration could halt the momentum.
By Ayhan Simsek for Southeast European Times -- 03/09/07
Oil exploration in Cyprus is causing contention between Turkey and Greece. [Southeast European Times photo illustration]
The internationally recognised Cypriot government recently announced a tender and accepted applications for oil and gas exploration in the south and southwest of the island. Turkey, which has militarily occupied northern Cyprus since 1974, has said such a move is "unacceptable". Ankara has also warned international oil and gas companies that it will not tolerate erosion of its interests in the eastern Mediterranean.
The Turkish Cypriot administration also opposed the move by Nicosia. "We should be partners -- they cannot utilise the resources of the island without our consent," said Turkish Republic of Northern Cyprus (TRNC) President Mehmet Ali Talat said.
Oil giants Shell, Exxon and BP have refrained from taking part in the tender. Only three applications have been submitted, one from a Texas based company. A consortium of three companies from Norway, the United Arab Emirates and the United Kingdom also applied for exploration rights.
Meanwhile, Turkey has launched a counteraction. The state-owned Turkish Petroleum Corporation (TPAO) is moving ahead with plans to explore oil and gas, initially on Turkey's continental shelf along the Mediterranean coast. The government has already granted TPAO licenses to begin surveying four out of 11 exploration blocks.
The Cypriot government plans to explore oil and gas in a 70,000 sq km area that separates the island from Egypt and Lebanon. According to estimates, the area could yield between eight and ten billion barrels of oil.
The Turkish side claims the real aim of the Greek Cypriot move is to complicate the Cyprus issue by drawing new parties into it.
Turkey's TPAO has started an exploration project on Turkey's continental shelf along the Mediterranean coast. [TPAO.gov]
Asked to comment on the application of a US company to the tender, the US State Department said that the internationally recognised government of Cyprus has the right to request bids for oil exploration within its own economic zone. "The involvement of US firms in such investment is a business decision," the State Department said.
Portugal, the current holder of the EU's rotating presidency, also said that the Cypriot government was acting under international law and took the appropriate conventions.
The flap over oil rights comes at a particularly sensitive time, as the international community tries to revive the stalled peace talks on Cyprus. Under increased diplomatic pressure, the Greek Cypriot and Turkish Cypriot leaders finally agreed last week to meet on September 5th to resume peace talks, after an almost one-year break.
Last July, Cypriot President Tassos Papadopoulos and Talat agreed to launch two-layer negotiations. Technical committees would deal with day-to-day issues, while working groups would discuss substantive questions. But little progress has been made, due to a lack of trust between the two sides. Each has blamed the other for the impasse.
Papadopoulos subsequently turned down proposals from Talat for new talks, arguing that they should not have a meeting for the sake of having one, or for public relations purposes.
With Cyprus' presidential elections coming in February, however, Papadopoulos recently sought to take the initiative.
A recent survey, published in the Greek Cypriot daily Politis, put Papadopoulos in the lead with 28% -- down slightly from a poll in June. Independent candidate Ioannis Kassoulides, who is backed by the right-wing Democratic Rally Party (DISY), is next with 26.8% -- a 0.6% increase from last month. Demetris Christofias, head of the left-wing AKEL party, saw his support rise 3.3 points to 26.5%.
Cypriot President Tassos Papadopoulos (left) and TRNC President Mehmet Ali Talat will meet this week. [Southeast European Times photo illustration]
Papadopoulos has been criticised by the International Crisis Group (ICG), a Brussels-based think tank. It argues that a comprehensive solution for Cyprus will only be possible with new leadership. "An opportunity for change in Greek Cyprus may emerge if presidential elections in February 2008 produce a more pro-reunification president than the current hardliner, Tassos Papadopoulos," the group said in a report.
The ICG report also urged the Greek Cypriot government to recognise that "reunification of the island is only possible through the UN bicommunal, bizonal process" and that authorities should explain this fact to the Greek Cypriot population. "The government of Cyprus should set out realistic political goals that acknowledge a compromise with the Turkish Cypriots will require sacrifice by the Greek Cypriots as well," it said.
Cyprus has been divided for over three decades between the internationally recognised Greek Cypriot administration in the south and the self-declared TRNC in the north. In 1974, citing its role as a one of the guarantor powers on Cyprus, Turkey invaded in response to a coup by a group of Greek officers who were pushing for union between Cyprus and Greece. It eventually occupied around 37% of the island's territory.
In 1983, the Turkish Cypriot authorities founded the TRNC. It has been recognised only by Turkey.
The Greek-run Republic of Cyprus joined the EU in May 2004, claiming to represent the island as a whole. A month prior to that, Greek Cypriots overwhelmingly rejected the UN-sponsored Annan Plan -- the last major effort for the unification of the island. .
Turkish Cypriots, in a separate referendum in April 2004, voted in favour of the plan, which had to be endorsed by both sides in order for a reunified Cyprus to enter the EU. The Turkish-run northern sector remains under international isolation.
This content was commissioned for SETimes.com