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President Christodoulides Assures Transparency In Vasilikos Investigation

by THEFUTURE.TEAM

August 5, 2024

President Nikos Christodoulides has emphatically assured that there will be no cover-up in the ongoing investigation into the Vasilikos liquefied natural gas (LNG) infrastructure project. Addressing the media, the President confirmed full cooperation with the European Public Prosecutor’s Office, stating that all findings will be transparent and accountable.

The project initially contracted to a consortium led by Chinese firm CPP-Metron Consortium Ltd, encountered significant delays and financial disputes, leading to the contract’s termination. The European Commission is demanding the reimbursement of €68.6 million from Cyprus due to irregularities in the project.

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President Christodoulides reiterated his commitment to justice and accountability, ensuring that no individual or entity will be shielded from scrutiny. The President’s firm stance underscores the government’s dedication to integrity and lawful conduct in public projects.

Background and Implications

In 2018, Cyprus awarded a €542 million contract to the CPP-led consortium to construct the Vasilikos LNG terminal. The project, plagued by delays and financial disputes, was initially scheduled for completion in 2019 but faced numerous setbacks, pushing the deadline to 2022 and beyond. The contract’s collapse in July 2024 has now led to international arbitration, with CPP seeking €200 million from Cyprus.

This situation has garnered significant attention, not only due to the financial implications but also because of the potential impact on Cyprus’s energy strategy. The Vasilikos project was a cornerstone of the country’s plans to diversify its energy sources and reduce reliance on imported fuels. The investigation’s outcome will thus be pivotal in shaping the future of Cyprus’s energy infrastructure and policy.

Transparency and Accountability

President Christodoulides’s assurance of no cover-up and full cooperation with European authorities highlights a strong commitment to transparency. This approach is crucial in maintaining public trust and ensuring that all stakeholders are held accountable. The President’s declaration that no one is above the law is a clear message to both the Cypriot public and the international community that Cyprus is dedicated to upholding the highest standards of governance.

The ongoing investigation by the European Public Prosecutor’s Office, alongside the demand from the European Commission for reimbursement, indicates a rigorous scrutiny of the project’s contractual and financial irregularities. The findings from these investigations will play a critical role in determining the legal and financial repercussions for the parties involved.

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Competition Authority Launches Comprehensive Review of ExxonMobil Cyprus Acquisition

by THEFUTURE.TEAM

September 16, 2025

Investigation Initiated Over Strategic Acquisition

The Competition Protection Authority has commenced a thorough investigation into the acquisition of ExxonMobil Cyprus Limited’s share capital by Petrolina Holdings Public Ltd through Med Energywise Ltd. This inquiry was formally initiated following a session held on 10 September 2025, after an in-depth review of the pertinent report by the Authority’s Service.

Concerns Over Market Compatibility

Authorities have expressed serious concerns regarding the compatibility of the transaction with established competitive practices. The review indicates that the acquisition may affect several critical petroleum markets, both horizontally and vertically, thereby raising the potential for adverse impacts on market dynamics.

Horizontal Market Dynamics

On the horizontal front, potential effects have been identified in the import market for petroleum products, as well as in both wholesale and retail distribution channels of these products. The consolidation is believed to increase the risk of price rises and coordinated actions, given the direct competitive proximity between Petrolina and ExxonMobil.

Vertical and Adjacent Market Implications

Vertical aspects of the merger are also under close scrutiny. The new entity could restrict competitors’ access to critical infrastructure such as storage facilities, supply channels, and customer bases. These restrictions could further affect the onshore distribution of fuels, the wholesale market for lubricants, and specialized technical services connected with fuel station operations.

Local Market Considerations

Particular attention is being paid to the potential concentration in the retail fuel market. The investigation suggests that a reduced competitive landscape within a four-kilometer radius of the companies’ fuel stations could lead to diminished local competition, adversely impacting consumer prices and options.

Next Steps and Industry Impact

The Competition Protection Authority, which reached a unanimous decision to pursue a full investigation, remains open to submissions from parties that might be affected by this transaction, as mandated by current legislation. A final decision is expected within four months upon receipt of all necessary evidence, potentially setting a significant precedent for future market consolidation cases in the energy sector.