6.250
%
Positive
57
mm boe
0
%
Given the limited body of O&G law and the world-scale size of the prospects, we believe that, while the regime is currently benign, the government will increase its take as it compares itself internationally. Progress on Cronos and Aphrodite towards development via Egypt supports the outlook. Outlook maintained because development of the major discoveries is advancing. Outlook: Positive. Risk premia unchanged at 6.25%.
October 7, 2026
Middle East
mm bbl
bcf
Middle East, island in the Mediterranean Sea, south of Turkey; note - Cyprus views itself as part of Europe; geopolitically, it can be classified as falling within Europe, the Middle East, or both.
Multiple (PSC/Concession)
There are currently no specific tax laws on hydrocarbon exploration and exploitation activities in Cyprus, and the general (corporate) tax laws in force are applicable. The definition of the terms “Cyprus Republic” and “permanent establishment” includes all activities relating to the exploration and exploitation within Cyprus territorial sea as well as within any area outside the territorial sea, including the contiguous zone, the exclusive economic zone and the continental shelf.
Cyprus is a stable EU and eurozone member, but the island remains divided, with no settlement in sight with the Turkish Cypriot north. Under President Nikos Christodoulides, US–Cyprus ties have deepened, including the lifting of the US arms embargo. US and UK guidance cite an English-law-based legal system and low taxes, but note heightened scrutiny of Russian-linked finance and sanctions compliance. Offshore gas discoveries such as Aphrodite (Chevron), Cronos (Eni/TotalEnergies) and Glaucus (ExxonMobil) are significant, but monetisation is constrained by the lack of export infrastructure and Turkish objections to Cypriot exploration rights; the delayed Vasilikos LNG import terminal and stalled Great Sea Interconnector cable illustrate execution risk.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
© 2024 Oil & Gas Advisors Limited
Website by Rugby Web Design
