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Cyprus in the Energy and Geopolitical Chessboard of the Eastern Mediterranean

Published March 11, 2026, 09:10
Cyprus in the Energy and Geopolitical Chessboard of the Eastern Mediterranean

Despite having significant offshore natural gas resources, Cyprus lags behind its regional partners in converting these potentials into tangible energy power and influence. Unlike Egypt, which has established liquefaction capabilities, or Israel, which has rapidly developed its offshore reserves and export capacity, Cyprus has failed to promote the commercialization of its natural gas. This is due to the lack of completed energy infrastructure and delays in implementing critical projects, reducing its negotiating power and relegating it to a regional factor. The discovery of the 'Aphrodite' field in 2011 was seen as an opportunity for Cyprus, however, to date, the country remains trapped in a vicious cycle of waiting and claims. The unitization agreement with Israel remains pending, delaying the commercial exploitation of the field. However, there is movement towards a final settlement. The two countries have reached an agreement to appoint an Independent Verification Body (IVB) by the end of March 2026, an institutional and technocratic solution that will be binding on both sides. This development restores the sense of security required by international energy giants to implement the project. At the same time, international oil companies are seeking to minimize initial investment costs, while geopolitical instability in the region and Turkish challenges are additional factors influencing the development of the reserves.