Oct 30 (Reuters) – Cyprus said on Tuesday it would start negotiations with Italy’s ENI, South Korea’s Kogas , France’s Total and Russia’s Novatek for the potential development of natural gas fields off the east Mediterranean island.

The negotiations would cover four offshore blocks lying south and southeast of the island, and close to a gas find last year for which U.S. based Noble Energy already has concessions over, energy minister Neoclis Sylikiotis said.

“The reason we decided to move ahead with these four areas is to create economies of scale, bearing in mind the synergies from the geographic proximity to block 12,” Sylikiotis told reporters.

It would also contribute to the “sustained and sound” economic development of Cyprus, he said. The island sought an EU and IMF bailout in June after its commercial banks reported huge losses to a debt crippledGreece, and authorities were unable to tap international capital markets because of fiscal slippage.

Tuesday’s decision concerns a joint bid by ENI and Kogas for two offshore blocks, a joint bid by Total and Novatek for one block, and a fourth bid by Total to develop a field on its own, Cypriot authorities said.

Cyprus reported a significant natural gas discovery of between 5 trillion and 8 trillion cubic feet (tcf) of gas in block 12 in late 2011.

Turkey, which is at diplomatic loggerheads with ethnically-split Cyprus for decades, claims the island has no authority to explore for gas offshore. (Reporting by Michele Kambas; Editing by Marguerita Choy)

Published by :uk.reuters.com