Companies bid for Cyprus oil exploration licences

An international consortium and a US based company have applied for licences to explore for oil off Cyprus’ coast. The US company applied for one block while a consortium of 3 companies from Norway, the United Arab Emirates and the UK applied for 2 blocks. The names of the companies have not been disclosed.

Evaluation of the applications is expected to be completed before the end of 2007 and a second licencing round will be introduced early in 2008, when two more blocks will be made available.

The Turkish Republic of Northern Cyprus is against the venture and has warned Cyprus not to search for oil and gas in the area as any natural reserves discovered belong to both sides of the island.

Following a Turkish invasion in 1974, Cyprus has been divided and attempts to reunite the island have been at a standstill since 2004 when a UN-backed referendum was rejected by Greek-Cypriots but accepted by Turkish-Cypriots living in the north.