Licensing & Regulatory Framework

Cyprus awards offshore exploration licenses through competitive bidding rounds under Production Sharing Contracts (PSC). This section covers the licensing process, fiscal terms, and regulatory bodies overseeing hydrocarbon activities.

4
Licensing Rounds
10
Licensed Blocks
3
Open Blocks
10%
Royalty Rate

Regulatory Bodies

Ministry of Energy, Commerce and Industry

MECI

Primary government authority responsible for energy policy, licensing rounds, and oversight of hydrocarbon activities in Cyprus.

Cyprus Hydrocarbons Company

CHC

State-owned company managing Cyprus government commercial interests in hydrocarbons. Monitors licensed activities and participates in development decisions.

Cyprus Energy Regulatory Authority

CERA

Independent authority regulating energy markets, including natural gas transmission, distribution, and supply licensing.

Department of Environment

DEP

Responsible for environmental impact assessments and permits for offshore exploration and production activities.

Licensing Rounds Timeline

2007

First Licensing Round

The first licensing round launched Cyprus offshore exploration. Block 12 was awarded to Noble Energy (now Chevron), leading to the Aphrodite discovery in 2011.

2012

Second Licensing Round

ENI and KOGAS consortium won three blocks in the second round, establishing ENI as a major player in Cyprus.

2016

Third Licensing Round

Major round bringing ExxonMobil and TotalEnergies to Cyprus. Block 10 later yielded the giant Glaucus discovery.

2019

Fourth Licensing Round

The fourth round expanded ExxonMobil and TotalEnergies positions in Cyprus EEZ.

Related Resources