Question

Explain in Details the economics in Cyprus related to Oil and Gas !

Answer 1

Cyprus energy sector transforming thanks to new natural gas discoveries and more drilling plan for 2019. With multinational oil and gas companies investing heavily in the Eastern Mediterranean the country well balanced to moved from exploration to production and become key energy hub in the region.

Cyprus has become one of the biggest opportunities for foreign companies for the discovery of vast natural gas reserve in both the island Exclusive Economic Zone (EEZ) and in immediate neighborhood in recent year.

Cyprus oil and gas sector certainly set to become a key driver of economic growth with that Cyprus exploit its natural gas and hoping the high revenues in the future.

Energy Ministerial of Cyprus confirmed in March 2018 discussion with Shell to buy around 8 billion cubic meters of gas per year, over a ten years period. These discussion have since progressed with the approval in 2019 of an inter government agreement between Cyprus and Egypt to build Subsea pipeline connecting Aphrodite to Egypt liquefaction Plants and production sharing deal in June 2019 with noble energy and its partner over the Aphrodite gas reservoir which is set to bring Cyprus an estimated $93 billion over the 18 years.