Egypt ratifies agreement with Cyprus for co-exploitation of hydrocarbons

Egyptian President Abdel Fattah el-Sisi has issued a presidential decree with which he approves the ratification of the framework agreement with Cyprus on the joint exploitation of hydrocarbon reserves.

The announcement was made by Energy Minister Giorgos Lakkotrypis.

Signed in December 2013, the agreement concerns the exploitation of hydrocarbon reserves straddling the median line between the two countries’ exclusive economic zones (EEZ).

The seminal agreement paves the way for commercial interests to take advantage of any hydrocarbon reserves found in areas that could cross either side of the dividing line between the two countries’ EEZ.

The unitisation agreement is a final agreement between two governments, and the first one signed between Cyprus and one of its neighbours, with significant implications for the development of the industry in the eastern Mediterranean.