Page 4 - EurOil Week 33

EurOil COMMENTARY EurOil

Eastern promise stokes tensions

Turkish moves to explore for oil and gas in contested waters in the Eastern

Mediterranean have inflamed tensions in the region

EASTERN TENSIONS have been escalating between – largely of natural gas – in waters belonging to
MEDITERRANEAN Greece and Turkey over drilling in contested a number of countries. These include Egypt,
waters in the Eastern Mediterranean, with the Israel and Cyprus. Indeed, interest in the region’s
WHAT: French government bolstering its military pres- potential was illustrated recently by Chevron’s
Turkey’s push to explore ence in the region in recent days. announcement that it would buy Noble Energy.
for hydrocarbons This comes after Turkey sent the Oruc Reis The independent’s Eastern Mediterranean assets,
in contested waters seismic research vessel, escorted by warships, including stakes in producing projects offshore
is ratcheting up into waters between the Greek island of Crete Israel and an undeveloped discovery in Cyprus’
tension in the Eastern and Cyprus to explore for potential offshore gas waters, are thought to have been a significant
Mediterranean. and oil reserves last week. The move was spurred attraction for Chevron.
by similar discoveries in other parts of the East- The US Geological Survey (USGS) estimated
WHY: ern Mediterranean. Greece claims that part of in 2010 that the Eastern Mediterranean’s Levant
Turkey has overlapping the area falls within its own continental shelf and Basin could hold a mean of 1.7bn barrels of
claims with Greece and has demanded that the ships withdraw, but Tur- recoverable oil and 122 trillion cubic feet (3.5
Cyprus to certain waters key insists that it is entitled to conduct research trillion cubic metres). The basin is largely located
that it now wants to in those waters. in Israeli and Cypriot waters, but considerable
explore. On August 17, Turkey’s state-owned TPAO potential exists in the broader Eastern Mediter-
extended the drilling schedule for its Yavuz ranean region, as shown, among other finds, by
WHAT NEXT: drillship offshore Cyprus to mid-September in Egypt’s Zohr field.
Thus far Turkey appears a move that appears set to ramp up tensions in The picture is complicated, however, by
determined to complete the region further. Turkey has previously drilled relations between some of the countries in the
its near-term exploration wells in waters claimed by Cyprus. According to region. Notable here is the breakaway Turkish
plans, but international Turkish media, the country is also preparing to Republic of Northern Cyprus, which is recog-
pressure on the country ramp up its drillship presence in Eastern Medi- nised only by Turkey and has been a particularly
is growing. terranean waters. thorny issue for Cyprus and Greece since its
European Union foreign ministers have held establishment.
urgent talks on the matter, with Turkey indicat- The officially recognised Republic of Cyprus
ing a willingness to enter a dialogue with the bloc claims sovereignty over the island’s waters, but
over the issue. However, there is no sign of the Northern Cyprus disputes this, with support
tensions being scaled down as yet. from Turkey.
Exploration in Turkish waters, mean-
Offshore riches while, has not led to any major gas discoveries,
The Eastern Mediterranean region has been while the country appears to be increasingly
attracting attention recently thanks to discoveries excluded from shared energy infrastructure

P4 www. NEWSBASE .com Week 33 20•August•2020