Potential Cyprus Gas Wealth Could Ease Bailout

There is up to €400 billion worth of gas to be tapped under Cypriot waters, according to experts interviewed by Reuters.

"Prima facie, it's huge. Much bigger than anyone is talking about," said Michael Economides, an energy consultant based in Houston, Texas.

The potential wealth in the gas fields came into focus as the Mediterranean country went to the polls in a presidential election. As the weekend result was inconclusive, another vote will be held next Sunday, February 24.

Favourite in Sunday’s election, Nicos Anastasiades of the opposition Disy, fell short of an outright victory.

Cyprus is one of the European countries in financial crisis, and has been negotiating an International Monetary Fund-led bailout of around €18 billion.

Both Anastasiades and his main opponent, Stavros Malas, say revenue from future sales of natural gas deposits should be used for reducing debt, while the rest goes into national growth initiatives.

Cyprus reported its first natural gas find in late 2011. US company Noble Energy estimated a gross mean of 7 trillion cubic feet (tcf) in a well south-east of the island. 

See also: Cyprus Energy Chief Urges Rapid Gas Development