ExxonMobil, Qatar Sign Cyprus Gas Deal despite Turkey Opposition

Cypriot Energy Minister Natasa Pilides stands alongside Qatari ambassador Ali Yousef al-Mulla (2nd), Qatar Energy's Ali al-Mana (R) and Varnavas Theodossiou (L), a lead country manager for ExxonMobil, after signing a hydrocarbon exploration contract. (AFP)
Cypriot Energy Minister Natasa Pilides stands alongside Qatari ambassador Ali Yousef al-Mulla (2nd), Qatar Energy's Ali al-Mana (R) and Varnavas Theodossiou (L), a lead country manager for ExxonMobil, after signing a hydrocarbon exploration contract. (AFP)
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ExxonMobil, Qatar Sign Cyprus Gas Deal despite Turkey Opposition

Cypriot Energy Minister Natasa Pilides stands alongside Qatari ambassador Ali Yousef al-Mulla (2nd), Qatar Energy's Ali al-Mana (R) and Varnavas Theodossiou (L), a lead country manager for ExxonMobil, after signing a hydrocarbon exploration contract. (AFP)
Cypriot Energy Minister Natasa Pilides stands alongside Qatari ambassador Ali Yousef al-Mulla (2nd), Qatar Energy's Ali al-Mana (R) and Varnavas Theodossiou (L), a lead country manager for ExxonMobil, after signing a hydrocarbon exploration contract. (AFP)

US giant ExxonMobil and Qatar Energy signed a contract Friday for oil and gas exploration and production-sharing off the divided island of Cyprus despite Turkey's opposition to the deal.

Cypriot Energy Minister Natasa Pilides, Varnavas Theodosiou, CEO of ExxonMobil Cyprus, and Ali al-Mana, director of Qatar Energy's International Upstream and Exploration, signed the contract in Nicosia.

It is the second gas exploration contract that the consortium has signed for Block 5 in the island's Exclusive Economic Zone (EEZ).

In February 2019, the consortium discovered a huge natural gas reserve off Cyprus in Block 10, the island's largest find to date, holding an estimated five to eight trillion cubic feet.

The consortium plans to drill an appraisal well on Block 10 in late December, with results expected by the end of February.

Oil and gas drilling off Cyprus has been interrupted by the Covid-19 pandemic.

"Despite the increasingly difficult working environment for the global oil and gas industry, today we are taking a decisive step towards enhancing our mutually beneficial partnership," Pilides said at Friday's signing ceremony.

Asked about Turkey's negative reaction to the licensing of Block 5, Pilides said: "We proceed based on international law and the Law of the Sea; this has always been our principle."

Fieldwork on Block 5 will begin in the second half of 2022, she said.

Turkey has threatened to prevent ExxonMobil's search for oil and gas off Cyprus after Nicosia awarded it the rights to Block 5.

Last week, the Turkish foreign ministry said a sector of the licensed area violates Turkey's continental shelf in the eastern Mediterranean.

"Turkey will never allow any foreign country, company or ship to engage in hydrocarbon exploration activities in its maritime jurisdictions," the ministry said.

Ankara would "defend" its rights and those of the Turkish Republic of Northern Cyprus, it said.

The breakaway TRNC, recognized only by Ankara, lays claim to energy resources discovered off its coast, insisting the island's natural resources belong to both communities.

The eastern Mediterranean has become an energy hot spot, with significant natural gas finds for Cyprus, Israel and Egypt.

Ankara was accused of "gunboat diplomacy" in February 2018 when the Turkish navy prevented a ship leased by Italy's ENI from reaching its drilling target in Cyprus's Block 3.

The European Commission has urged Turkey to de-escalate and vowed to defend the interests of member states Greece and Cyprus.

Turkey was widely condemned for sending its own drillships into Cypriot waters for energy exploration, with the EU slapping sanctions on Ankara.

In the first half of 2022, ENI and France's Total are expected to drill in their licensed blocks.

Cyprus has been divided since Turkey invaded and occupied its northern third in 1974 in response to a Greek-engineered coup aiming to annex the island.

Nicosia has pushed ahead with offshore energy exploration despite the collapse in 2017 of UN-brokered talks to end the country's decades-long division.



Trump Taps Scott Bessent for Treasury

(FILES) Scott Bessent, head of Key Square Group and former chief investment officer of Soros Fund Management, attends the second day of the annual Allen & Company Sun Valley Conference, July 12, 2017 in Sun Valley, Idaho.(Photo by Drew ANGERER / GETTY IMAGES NORTH AMERICA / AFP)
(FILES) Scott Bessent, head of Key Square Group and former chief investment officer of Soros Fund Management, attends the second day of the annual Allen & Company Sun Valley Conference, July 12, 2017 in Sun Valley, Idaho.(Photo by Drew ANGERER / GETTY IMAGES NORTH AMERICA / AFP)
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Trump Taps Scott Bessent for Treasury

(FILES) Scott Bessent, head of Key Square Group and former chief investment officer of Soros Fund Management, attends the second day of the annual Allen & Company Sun Valley Conference, July 12, 2017 in Sun Valley, Idaho.(Photo by Drew ANGERER / GETTY IMAGES NORTH AMERICA / AFP)
(FILES) Scott Bessent, head of Key Square Group and former chief investment officer of Soros Fund Management, attends the second day of the annual Allen & Company Sun Valley Conference, July 12, 2017 in Sun Valley, Idaho.(Photo by Drew ANGERER / GETTY IMAGES NORTH AMERICA / AFP)

President-elect Donald Trump on Friday said he will nominate prominent investor Scott Bessent as US Treasury secretary, a key cabinet position with vast influence over economic, regulatory and international affairs.

"I am most pleased to nominate Scott Bessent to serve as the 79th Secretary of the Treasury of the United States," Trump said in a statement released on Truth Social. "Scott is widely respected as one of the world's foremost international investors and geopolitical and economic strategists."

Wall Street has been closely watching who Trump will pick, especially given his plans to remake global trade through tariffs and extend and potentially expand the raft of tax cuts enacted during his first term, Reuters reported
The choice came after days of deliberations by Trump as he sorted through a shifting list of candidates. Bessent spent day after day at Trump's Mar-a-Lago home in Florida providing economic advice, sources said, a proximity to the president-elect that may have helped him prevail.
Other names that had been floated included Apollo Global Management Chief Executive Marc Rowan and former Federal Reserve Governor Kevin Warsh. Investor John Paulson had also been a leading candidate, but dropped out, while Wall Street veteran Howard Lutnick, another contender, was appointed as head of the Commerce Department.
Bessent, who did not immediately respond to a request for comment, has advocated for tax reform and deregulation, particularly to spur more bank lending and energy production, as noted in a recent opinion piece he wrote for The Wall Street Journal.
The market's surge after Trump's election victory, he wrote, signaled investor expectations of "higher growth, lower volatility and inflation, and a revitalized economy for all Americans."
"Bessent has been on the side of less aggressive tariffs," said Oxford Economics' Ryan Sweet, adding that picking him makes the steep tariffs Trump proposed on the campaign trail less likely.
Bessent follows other financial luminaries who have taken the job, including former Goldman Sachs executives Robert Rubin, Hank Paulson and Steven Mnuchin, Trump's first Treasury chief. Janet Yellen, the current secretary and first woman in the job, previously chaired the Federal Reserve and White House Council of Economic Advisers.
Republican US Senator Lindsey Graham from South Carolina, Bessent's home state, said in a statement: "President Trump's economic agenda is in good hands with Scott Bessent. I look forward to working closely with Scott and President Trump to lower inflation and create the golden age of prosperity for the American people."