Gas companies declare Cyprus gas field 'commercially viable'

A consortium of companies have declared a gas field off the coast of Cyprus “commercially viable.”

The Aphrodite gas field, estimated to contain around 127.4 billion cubic metres of gas, was first discovered by US gas company Noble Energy International in 2011.

The Cyprus Energy Ministry announced the viability of the field on Sunday, and said a development and production plan would be submitted.

"Noble Energy International, Delek Drilling and Avner Oil Exploration, holders of a licence for the exploration of hydrocarbons in Block 12 of Cyprus's Exclusive Economic Zone (EEZ), have declared commerciality of Aphrodite," the energy ministry said in a statement.

The ministry described it as a "significant milestone to Cyprus's transition from the hydrocarbons exploration phase to that of exploitation."

"It is another important step towards the monetisation of the country’s indigenous natural gas reserves, both for domestic electricity generation...as well as exports via direct subsea pipelines to neighbouring countries."

An EEZ is an area designated by the UN to be used specifically by one state for the purpose of exploration for natural resources.

The status of the Mediterranean’s gas fields has long been contested - though the UN has agreed a series of EEZs for the various coastal nations, the boundaries drawn have not been universally recognised.

In particular, Turkey’s refusal to recognise the Republic of Cyprus - instead recognising the Turkish Republic of Northern Cyprus (TRNC) - has led to clashes over drilling rights in the Cyprus EEZ.

Though Turkey had been drilling for gas in the seas around Cyprus for many years - actions branded “illegal” by the Republic of Cyprus - in September 2014, tensions were heightened after Turkey sent a warship to monitor the drilling process.

As a result, peace talks between Greek and Turkish Cypriots were suspended, with Republic of Cyprus President Nicos Anastasiades slamming Turkey’s actions as “provocative.”

“Turkey’s provocative actions do not just compromise the peace talks,” he said.

“[They] also affect security in the eastern Mediterranean region.”

The Italian-South Korean energy consortium Eni-Kogas in March said it had failed to discover any exploitable gas reserves in the Cypriot seas. In January, French energy giant Total also said it had failed to locate any targets.

Cyprus has sought to establish itself as a regional player through its exploitation of its energy resources and has already entered into trade negotiations with Egypt and Israel.

Israeli firms Delek and Avner already have a 30 percent stake in the Aphrodite venture.

Wranglings over Mediterranean gas fields have also taken place between Israel and the Palestinian Authority, who were revealed by Middle East Eye in an investigation to be able to claim 6,600 square kilometres of maritime territory off the coast of Gaza for energy exploration.