Turkey threatens to start gas exploration off Cyprus

Energy Minister Taner Yildiz said work, escorted by the Turkish navy, would start next week if the Cypriots do not stop drilling Block 12.

Turkey's Minister of Energy Taner Yildiz has described the decision by Noble Energy Inc. (NYSE: NBL) to start exploratory drilling of Cyprus's Block 12 today as a "provocation."

Yildiz said, "The drilling work which the Greek Cypriots will conduct in the eastern Mediterranean is a provocation. We want the Greek Cypriots to halt immediately the work with Noble."

Yildiz said that if the Cypriots do not stop drilling, then Turkey would begin its own gas and oil exploratory work next week off the coast of the Turkish Cypriot administration on the northern part of the island.

He added, "We can say that Turkish naval ships may escort Turkish seismic survey ships doing exploration in the Mediterranean Sea. Oil exploration platforms would follow but we don't want it to come to that."

Earlier today Cyprus Energy Service director Solon Kassinis confirmed to "Reuters" that Noble Energy had begun drilling. He said, ""It started late last night. It's preparatory work, yes, but the procedure for drilling has started."

Kassinis said that the drilling would take 73 days.

Cyprus's Block 12 is to the west of Israel's Leviathan field. Last week speaking to "Globes" Kassinis raised the possibility that Israel could protest block 12. Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) have agreed a 30% stake in Block 12 with Noble Energy and are awaiting a permit from the Cypriot government.

Meanwhile, EU representatives, fearing a confrontation between Turkey and Cyprus over the drilling, have asked both sides to act with constraint.

Published by Globes, Israel business news - www.globes-online.com - on September 19, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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