Cyprus offshore: Turkey turns up the heat

The prospects for monetising natural gas discovered off Cyprus have risen, but so has the geopolitical temperature

The Cyprus authorities can point to two positive aspects of the current offshore gas scene—and one negative one in the form of Turkey's moves to assert its authority in Cypriot waters. Tension is rising. On the plus side for Cyprus, leading international oil companies (IOCs)—Eni, ExxonMobil, Total—are confident of finding more reserves; and a deal has been done that could eventually see Cypriot gas being monetised. Noble Energy, Delek and Shell, partners in the Block 12 Aphrodite discovery (4.1tcf of gas in place), have reached an agreement amending their production-sharing contract (PSC) with the Cypriot government. The deal, in the consortium's favour, brings the PSC into line with those s