Novatek Considers Cyprus Gas Exploration

Russian oil and gas company Novatek has confirmed that it is considering applying for a licence to explore for gas in Cyprus's offshore gas blocks.

Novatek today confirmed to Reuters news agency that media reports speculating that the company would seek to explore in Cyprus's Mediterranean waters were correct.

"Yes, were are looking for possibilities to invest into projects, connected to our core business," a spokesperson told the news agency without defining exactly what those investments or projects might be.

In February Cyprus announced that it was opening a second round of licensing to cover its Exclusive Economic Zone (EEZ) offshore in the Mediterranean Sea. Twelve blocks are available for application as part of this licensing round.

Worldwide interest in Cypriot gas increased last year with the discovery of a massive gas prospect in Block 12 of the Mediterranean Sea. The discovery, led by Texas-based Noble Energy, confirmed the presence of between 5 and 8 trillion cubic feet of gas in the block.

Other companies who have reportedly stated a interest in the project include Novatek's Russian peer Gazprom, French Total and American Exxon Mobil.