CYPRUS (CU)_ Europe’s energy crisis deepens with the Russia – Ukraine war which began back in February this year. With the possibility of a severe strain on EU residents during this year’s winter season, a glimmer of hope may come to play with Cyprus making a new gas discovery. The energy minister Natasa Pilides stated that the new discovery can speed up the energy exploration.
Cyprus has already attracted investments from major energy corporations across the world that include Italian multinational oil and gas firm Eni and Frances TotalEnergies which stated that they had made a major gas discovery at the Cronos-1 well, in Block 6, located offshore in southern Cyprus. This finding was in addition to 3 other gas discoveries, which were the Aphrodite well in Block 12, licensed to US Company Chevron that produces crude oil and natural gas, Britain’s Shell together with Israeli partners.
The energy potential in Cyprus has also sparked anger with Turkey back in December 2021, when cypress entered into a contract for oil and gas exploration and production-sharing off Cyprus with US giant ExxonMobil and Qatar Energy. Turkey’s foreign ministry, stated that it would not permit any foreign country, company or ship to engage in hydrocarbon exploration activities which it claimed were its maritime jurisdictions. Turkey further stated that it would defend its rights and those of the Turkish Republic of Northern Cyprus, an area in Northern Cyprus not recognized by any country other than Turkey. The European Commission urged Turkey to move in a direction to simmer tensions and warned that it would defend its member states Greece and Cyprus.
The global energy crisis has sparked much unrest across the world with inflation rapidly increasing the rate of energy prices which resulted in long ques for gas and petrol in some countries and for countries within the EU the hostility with Russia is likely to see a rapid rise in electricity bills. The crisis is particularly even more concerning for most EU residents as the winter season will require more energy consumption with already strained finances, where there are fears many will go cold. The Cyprus natural gas discovery may help ease some of these burdens.
