Political Tensions Cast Shadow Over Eastern Mediterranean Gas Bonanza
Written by David Rosenberg
Published Monday, December 20, 2010
Israel and Cyprus Delineate Their Maritime Border, Upsetting Turkey
The eastern Mediterranean got another whiff this week of how politically fraught the division of natural gas spoils can be, as Israel and Cyprus agreed on a maritime border agreement, only to prompt an angry protest from Turkey.
Israel and Cyprus agreed to split the 250 kilometers (155 miles) of water that separates them about half-and-half in a signing ceremony on Friday. Three days later, Turkey called in Israel’s ambassador for a dressing down, saying the accord undermines efforts to reunify the island nation’s Turkish Cypriot north and Greek Cypriot south. Israel rejected the protest.
“This is a bilateral agreement between Israel and Cyprus,” Andy David, deputy spokesman for the Israeli Foreign Ministry, told The Media Line. “The Turks were notified before and during the negotiating process. This doesn’t have anything to do with the sovereignty or territorial integrity of Turkey.”With Israel in a permanent state of war with Lebanon and Syria; and Turkey disputing with the world over the division of Cyprus; and Lebanon riven by factionalism, the eastern Mediterranean is a political tinderbox. But until Israel discovered huge reserves of natural gas off its coast a decade ago, the region’s waters were calm.
The United States Geological Survey earlier this year estimated that more than 122 trillion cubic feet of recoverable gas reserves lie under the waters of the eastern Mediterranean, most of it within Israeli territory. Since then, some 16 trillion cubic feet of natural gas reserves have been tentatively added from the giant Leviathan field offshore from Israel.
The Israeli fields lie adjacent to Cypriot and Lebanese waters and are part of the so-called the Messinian layer, a formation of salts and mineral deposits that promise more gas discoveries to come. Nobel Energy, a Houston company is a partner in three Israeli gas fields, including Leviathan, also holds 100% of the yet unexplored Cyprus A field about 65 kilometers away.
Negotiations between Israel and Cyprus – in practice the Greek Cypriot government that belongs to the European Union but which Ankara refuses to recognize – were relatively simple. The two countries don’t have any significant political disputes and international law more or less defined the border between their two exclusive economic zones, leaving negotiators with nothing more than to sort out the details.
But Turkey objected to the agreement. It fears that the Greek Cypriots won’t share any gas wealth coming from the island’s 51,000 square kilometer exclusive economic zone with the Turks controlling the island’s north. But it has bigger issues connected with its perennial enemy, Greece, said Ronnie Sabel, professor of international relations at The Hebrew University in Jerusalem.
Greece has sovereignty over islands close to the Turkish coast. “If all these islands can claim exclusive economic zones, there’s a problem for Turkey,” Sabel told The Media Line. “They don’t want the Republic of Greece to enjoy all the income.”
Spokesman for Cyprus’ Foreign and Commerce Ministries weren’t immediately available for comment.
When Cyprus launched its first licensing round for hydrocarbons in mid-2007, Turkey reacted furiously. In October, a Turkish Energy Ministry official said Ankara was considering starting oil and gas exploration off the northern, Turkish-controlled coast of Cyprus, the Associated Press reported.
But, the biggest potential clash over gas is between Israel and Lebanon. Although international law puts the maritime border between the countries at a 90-degree angle to the shoreline, the coast is curved, which opens to dispute what constitutes 90 degrees -- a problem that is magnified as the theoretical line moves further and further out into the sea, said Sabel.
“We will not allow Israel or any company working for Israeli interests to take any amount of our gas that is falling in our zone,” Lebanon Energy Minister Gebran Bassil told Bloomberg News last June. Israel’s national infrastructure minster, Uzi Landau, who signed the accord with Cyprus last week, warned in return that Israel would fight to preserve it maritime rights.
When Iran’s president, Mahmoud Ahmadinejad, visited Lebanon in October, he signed a series of economic agreements, including oil and gas exploration accords. But because Iran is the subject of economic sanctions, particularly its energy industry, the accords aren’t likely to be realized.
Israel dismisses Lebanon’s claims out of hand, saying they are politically motivated and reflect the influence on the government of Hizbullah, the Lebanon-based Iran proxy Shiite Islamist group that fought Israel in a month-long war in 2006 and maintains its own arsenal and army of fighters. But Israeli officials are concerned about the vulnerability of gas installations to missile attacks like those Hizbullah staged in the last war.
In any case, Nobel and its other exploration partners don’t have to fear disruptions from Lebanon because the fields they are now working are not disputed by Lebanon.
http://www.themedialine.org/news/news_detail.asp?NewsID=30872