One step closer to Egyptian oil deal
By Elias Hazou
EGYPTIAN Minister of Petroleum Sameh Fahmy will be arriving on the island tomorrow for talks with the government on the possibility of joint exploitation of oil deposits in the Mediterranean.
The government is attaching a great deal of importance to the high-level meetings, which could pave the way for a landmark agreement between the two neighbours, with enormous economic benefits for both nations.
Similar reports of co-operation surfaced in the past, but the issue failed to materialise. Now, however, there is a sense that this is the real deal: Fahmy will be accompanied by a team of technocrats and advisors.
He will be meeting with Commerce Minister George Lillikas and later President Tassos Papadopoulos.
Due to the political ramifications, the negotiations with Egypt have been shrouded in secrecy. This week Lillikas frankly said he would not comment, and that announcements would be made if and when an agreement were reached.
The politics involved in such an undertaking are as complex as they are daunting. In addition to agreeing with Egypt, Cyprus needs to secure the consent of the other six neighbouring countries (including Turkey) on the extent of the so-called “exclusive economic zones.”
The government is reportedly anxious to close the deal by December. What is at stake is billions of dollars worth of oil deposits in the seabed shared by Egypt and Cyprus.
A number of studies have strongly suggested the presence of significant deposits of the resource lying in the exclusive economic zones of the two countries. The country that begins drilling first will evidently have the advantage, but the government prefers that an arrangement be found for joint exploitation.
Other items on the agenda of the talks with the Egyptians will be securing natural gas and sharing technical know-how. Nicosia is keen on tapping into the natural gas network, and is playing catch-up as other regional countries (such as Syria) are already co-operating with Egypt on this.
There are also plans to build a deliquefaction terminal at the Vasilikos power plant to turn the gas into the fuel providing electricity to the entire island. Deliquefaction is the process where liquefied natural gas (LNG) is turned into combustible fuel.
There are two ways in which the gas could reach the island: via an underwater pipeline or aboard tankers.
During his three-day stay in Cyprus, the Egyptian minister will be given a tour of the Vasilikos plant.
Various studies have shown that possible oil and natural gas reserves in the surrounding seas (outside Cyprus’ economic zone) amount to 6-8 billion barrels, currently worth $33-440 billion.
Here we go, the article in english, its a big 'if' they come to a deal and they still have to find the oil but the relevant line is this one for most to take on board.
The politics involved in such an undertaking are as complex as they are daunting. In addition to agreeing with Egypt, Cyprus needs to secure the consent of the other six neighbouring countries (including Turkey) on the extent of the so-called “exclusive economic zones.”
Lets hope that Turkey gives you the consent so you can laugh hey mike.
