median-line principle and in accordance with the provisions of the 1982 United Nations Convention on the
Law of the Sea (UNCLOS). Cyprus has also signed a Framework Agreement concerning the development of
cross-median line hydrocarbon resources with Egypt in 2013, while similar agreements are being considered
with Lebanon and Israel. A number of trilateral and quadrilateral meetings between Cyprus, Egypt, Greece,
Israel and Italy aim to boost our countries’ economic and energy cooperation. The Republic of Cyprus made a
remarkable effort to establish a friendly and cooperative climate in the region for regional stability, peace and
prosperity. We all need to seize the opportunities, which far exceed and outweigh the challenges ahead of us. I
dare say that the EU should do more for the promotion of the development of the resources in the Eastern
Mediterranean, which in turn will increase its energy security.
Cyprus, Israel, Greece and Italy have signed in December of last year, in Nicosia, a Memorandum of
Understanding regarding cooperation for the EastMed Pipeline, an EU-supported Project of Common Interest
(PCI) that aims to transmit gas from Cyprus and Eastern Mediterranean resources to Europe via Crete,
mainland Greece and Italy. It aims in reducing EU dependency, energy suppliers and routes, inter alia, by
exporting the potential for more gas imports from the Eastern Mediterranean. The EastMed Pipeline
Intergovernmental Agreement between Cyprus, Israel, Greece and Italy is currently being negotiated and has
been agreed to be signed by the end of this year.
Another very important Project of Common Interest that is being promoted by the Ministry of Energy is the
“CyprusGas2EU”, a project that aims in removing internal bottlenecks in Cyprus to end isolation and to allow
for the transmission of gas from the Eastern Mediterranean to Europe. It is implemented by DEFA (Cyprus’
Natural Gas Public Company). By 2020 Cyprus will construct a Floating Storage Regasification Unit (FSRU) in
order to import gas in the form of LNG from global markets, for the supply of domestic market with natural
gas, as well as other facilities related to the energy sector.
The third Project of Common Interest is the EuroAsia Interconnector, which is an electricity interconnection
between Israel, Cyprus and Greece, and highly supported by all three Governments. Since 2014, all of these
projects received important grants for studies and works from the Connecting Europe Facilities (CEF).
The Government is planning to create an Energy Centre at the Vassilikos area, where there is already a number
of industries in operation, such as the main power plant of Cyprus, oil storage terminals, a cement factory and
an industrial port. The area is expected to host the LNG Plant, the oil and LPG terminals that will be relocated
from Larnaca, the FSRU, as well as other facilities related to the energy sector. The expansion of the Vassilikos
Port will host the shore base facilities to support the offshore hydrocarbon exploration and exploitation
activities.
Ladies and Gentlemen
Dear Participants
It has been said in several occasions that our hydrocarbons sector is still in its infancy, yet the fact that the
Republic of Cyprus has set specific and tangible targets, helps us remain on track.
As you may be aware, the Ministry of Energy is closely engaged in discussions with the Aphrodite Contractor to
come to a mutually agreed Field Development and Production Plan. Let me remind the
the audience that the Aphrodite natural gas field was the first discovery in Cyprus’s EEZ in December
2011.After its appraisal in September 2013 the Contractor declared it a commercial field in June 2015 and
subsequently submitted a Development and Production Plan the same month. Following the comments /
observations / recommendations of the Minister and subsequent discussions, the Contractor submitted a
revised plan in April 2016.
Presently, the submarine pipeline option to Egypt is the most viable option for the monetisation of the field.
The Ministry is dedicated to send this Cypriot gas to Egypt, mainly for exports from the liquefaction plants of
Egypt. To this effect, in the framework of a sincere & transparent cooperation with the Egyptian Government,
we have signed a number of agreements with the last one being the Intergovernmental Agreement
Concerning a Direct Submarine Natural Gas Pipeline. This is the first of its kind in our shared region reaffirming
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