ENI’s operations in Turkey suspended by government in Cyprus gas row

The Turkish government has long held a claim over the eastern Mediterranean island of Cyprus, which has been divided since a Greek-backed coup in 1974; the recent discovery of gas deposits in the nearby seas has only served to increase tensions between Ankara and Nicosia.

A latest victim of the ongoing row between Turkey and Cyprus looks to be the Italian company, ENI, which was awarded an 80% stake in three offshore blocks in the Levantine basin by the Cypriot government. Turkish Energy Minister, Taner Yildiz said, “We have decided not to work with Eni in Turkey, including suspending their ongoing projects.”

The Turkish Deputy Prime Minister, Ali Babacan, had announced earlier this week that Cyprus’ attempt to use natural resources as a loan guarantee was unacceptable. He was quoted as saying, “The resources around the island do not belong only to Greek Cypriots. They belong to all people that live on the island in the framework of international law.”

Cyrpus is in the midst of financial difficulties, and has had to recently negotiate a €10 billion bailout from the European Central Bank. The Cypriot government is reported to be looking at the development offshore gas reserves as a method of resolving the country’s financial situation.

Edited from various sources by David Bizley

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