Israel Matzav: Davutoglu sounding more and more like Nasrallah

Sunday, August 07, 2011

Davutoglu sounding more and more like Nasrallah

American-based Noble Energy announced on Wednesday that it is going to begin drilling for gas off the coast of Cyprus by October 1.

Noble Energy Inc. (NYSE: NBL) will begin drilling for natural gas at Cyprus's offshore Block 12 by October 1, Energy Service director Solon Kassinis told "Cyprus Mail" today.

Block 12, located in Cyprus's Exclusive Economic Zone, is near Israel's Leviathan license in which Noble Energy is partner, together with Delek Group Ltd. (TASE: DLEKG) and Ratio Oil Exploration (1992) LP (TASE:RATI.L). Delek Group subsidiary Delek Energy Systems Ltd. (TASE: DLEN) has an option to acquire 30% of Block 12.

Cyprus has signed a production-sharing contract with Noble Energy, which has a concession to explore for hydrocarbons in Block 12. Kassinis said that Cyprus should obtain a clear view of the size of its hydrocarbons reserves in the block in about two months after the start of drilling. The government will then proceed with a second round of licensing for other blocks in the region.

Kassinis said that Noble Energy was contractually obliged to start drilling on or before October 1. "The rig is in our region. It’s now drilling in Israel’s (offshore field) Noa and will reach our area at the end of September or early October,” he said.

Kassanis told "Cyprus Mail" that during his recent trip to Israel, he met with various ministries and presented his thoughts on the potential collaboration between the two countries. “It appeared there was a very positive spirit. I believe that very soon we will have more meetings to finalize these matters," he said.

The announcement rankled Turkish Foreign Minister Ahmet Davutoglu, whose country has illegally occupied northern Cyprus since 1974.

Foreign Minister Ahmet Davutoglu said Cyprus had no right to go ahead with efforts to search for gas before a settlement to reunify the divided island will be reached.

"No one has the right to do anything over the island's natural resources ... before the Cyprus issue isn't resolved," Davutoglu told reporters. There must be an administration representing both parts of the island, he insisted.

"Turkey would show the necessary response if further steps are considered," he said. He did not specify what Turkey's response would be.

Cyprus was split into a Greek Cypriot south and a breakaway Turkish Cypriot north in 1974 when Turkey invaded the island. Cyprus joined the EU in 2004, but only the south enjoys the membership's benefits.

The island's northern part declared its independence in 1983 but it is recognized only by Turkey, which maintains 35,000 troops there.

If that sounds familiar, it's because it should.

Will the Obama administration back Noble Energy if that becomes necessary to enable Noble to carry out its contract? I think Noble is betting that Obama won't be in power by the time they start drilling.

What could go wrong?

Labels: Ahmet Davutoglu, Cyprus, Hezbullah, oil and gas exploration, Turkey