Gold Magazine January - February 2014, Issue 34 | Page 75

energy

Choosing the

Right Option

I

n the latest in its Mediterranean
Paper series, the GMF (German
Marshall Fund of the United States)
deals with Natural Gas in Cyprus.
The conclusions of the paper by
Anastasios Giamouridis are as follows:
The discovery of the Aphrodite gas field
and the potential for additional hydrocarbons discoveries in offshore Cyprus is very
timely.
It comes at a moment when the country faces multiple challenges, including
recovery from the economic and financial
crisis and reducing excessive dependence
on banking and financial services. In this
difficult environment, there has been a
tendency to see hydrocarbons as a
panacea for the island’s problems.

Contrary to frequent
claims, it is not selfevident that pipeline
exports to Turkey
would be the most
commercially viable
monetization option
The challenge for Cyprus (and its partners) is to develop its hydrocarbons potential as fast as possible, while at the same
time ensuring that it maximizes economic
benefits. Besides commercial issues, Cyprus
faces a degree of political risk stemming
from Turkey. Turkey contests the right
of Cyprus to develop resources within its
EEZ. It also seeks to link Cyprus’s right
to develop its offshore resources to a settlement of the problem of the division of
the island. The Cypriot government rejects
such pressures, which have not discouraged
important international energy companies
from bidding for licenses to exploit Cyprus’s offshore blocks