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.



Unprecedented Participation Expected at International Mining Conference in Riyadh on Tuesday

Ali Al-Mutairi, general supervisor of the conference (Asharq Al-Awsat)
Ali Al-Mutairi, general supervisor of the conference (Asharq Al-Awsat)
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Unprecedented Participation Expected at International Mining Conference in Riyadh on Tuesday

Ali Al-Mutairi, general supervisor of the conference (Asharq Al-Awsat)
Ali Al-Mutairi, general supervisor of the conference (Asharq Al-Awsat)

Riyadh is preparing to host the fourth edition of the International Mining Conference on Tuesday under the patronage of King of Saudi Arabia Salman bin Abdulaziz.
This year’s event has drawn an unprecedented number of participants, with over 20,000 registrations. It will feature the attendance of global CEOs, industry leaders, and executives from related sectors, who will gather to tackle the mining sector’s key challenges and offer innovative, sustainable solutions to advance the industry’s future.
Ali Al-Mutairi, general supervisor of the conference, told Asharq Al-Awsat that the conference, running from January 14 to 16, will kick off with the fourth International Ministerial Meeting on Mining Affairs. The meeting will host senior government representatives from 85 countries, along with 50 leaders from multilateral organizations, NGOs, and business associations.
This year’s edition introduces several groundbreaking initiatives, including a “Knowledge Exchange Day,” which will serve as a platform to share the latest advancements in geology, technology, and sustainability.
Al-Mutairi also revealed that the event will host the first “Centers of Excellence and Technology Meeting,” designed to establish a regional network to develop expertise and accelerate innovation in mining.
Additionally, the second meeting of leaders from international geological survey organizations will take place, featuring prominent institutions such as the US Geological Survey, the British Geological Survey, the French Geological Survey, and the Finnish Geological Survey. This meeting aims to enhance global collaboration and leverage advanced technologies to drive sector development.
The conference is expected to see the signing of several agreements and memorandums of understanding between local and international stakeholders, reflecting Saudi Arabia’s commitment to establishing itself as a global mining hub. The event further supports efforts to foster international cooperation and sustainable development in this vital sector.
Over 250 prominent speakers, including senior executives and experts, will participate in this year’s conference. Their contributions will open avenues for international partnerships and help explore strategic investment opportunities in mining.
Under the theme “Achieving Impact,” the conference continues the international dialogue on the future of mining and minerals, with the aim to strengthen global cooperation to meet energy transition goals and advance modern industries.
Aligned with Saudi Arabia’s vision to position mining as a cornerstone of its national economy, the event will address critical topics such as exploration, technological innovation, sustainability, and value-added chains. The event highlights the country’s ongoing efforts to empower the mining sector and ensure it serves as a key pillar of economic growth and diversification.