Cyprus House ratifies Egypt hydrocarbons’ deal
BY A unanimous vote, parliament yesterday ratified a unitisation agreement between Cyprus and Egypt on hydrocarbon reserves that straddle the border between the countries’ respective exclusive economic zones.
The agreement, concluded by the two governments in 2006, spells out how revenue from potential hydrocarbon reserves in this area can be divided. It does not contain specific figures, as these will be calculated based on a case-by-case basis depending on the exact location of the reserves.
The EEZs of the two countries extend 200km out from their respective coastlines. In the event that hydrocarbons are found in the space in between, the spoils will be shared based on the agreement.
Cyprus is also currently negotiating a unitisation agreement with Israel. This would arrange gas prospects into discrete units, given that some of the Cypriot prospects in the eastern Mediterranean border and/or overlap Israeli ones.
Late last month, US company Noble Energy announced the existence of a natural gas reservoir of between five and eight trillion cubic feet (tcf) in Cyprus’ Block 12 concession.
Source: cyprus-mail.com
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