Eastern Mediterranean Hydrocarbons: Regional Potential, Challenges Ahead, and the ‘Hydrocarbon-ization’ of the Cyprus Problem

Abstract

Natural gas discoveries in the offshore Eastern Mediterranean have been the source of regional geopolitical reshuffling. The purpose of this paper is to provide an analysis of implications of those changes on the Cyprus problem. The paper is composed of two main parts. The first part provides an exploration of historical development of hydrocarbon exploration activities in the offshore Eastern Mediterranean. While doing so, a special emphasis has been given on the cases of Israel and South Cyprus. Furthermore, an analysis of the possible export options for the regional potential is provided. The second part of the paper dwells on the implications of all these developments on the negotiation process towards the resolution of the Cyprus problem. It is argued that during the last decade hydrocarbon exploration activities by the Greek Cypriot Administration have had a negative effect at the negotiation table

Keywords

• Eastern Mediterranean, Cyprus Problem, Natural gas, Pipelines, Hydrocarbons.

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