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Cyprus Halts Gas Exploration In Blocks 2, 3, And 9 Following Disappointing Results

by THEFUTURE.TEAM

February 5, 2025

The energy exploration licenses for blocks 2, 3, and 9 within Cyprus’ Exclusive Economic Zone (EEZ) have officially expired and will not be renewed, following disappointing results from recent surveys, confirmed George Papanastasiou, Minister of Energy, Trade, and Industry.

This move signals the exit of South Korea’s state-owned Kogas, which held a 20% stake in these blocks. Following the expiry of the licenses, Italy’s Eni—leading the exploration consortium—retains rights to four blocks (6, 7, 8, and 11) in the Cypriot EEZ, in partnership with France’s Total. This is a reduction from the seven blocks they previously held.

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Addressing questions regarding a report by the energy website MEES, which suggested the return of rights to these blocks by the end of January, Papanastasiou confirmed the licenses had expired. The exploration, he noted, revealed no promising natural gas prospects, prompting the decision not to renew.

The Minister called the expiry of the licenses a “natural development,” emphasizing that not every block within Cyprus’ EEZ is expected to contain viable resources.

The exploration rights for blocks 2, 3, and 9 were initially awarded in January 2013 to a consortium including Eni Cyprus and Kogas Cyprus. Total later joined the group. Despite extensive seismic surveys and deep exploratory drilling—reaching depths of 5,800 meters at Amathusa-1 and 5,485 meters at Onasagoras-1—no commercially viable gas was discovered. In Block 3, exploration was disrupted by interference from the Turkish Navy in 2018.

The Future Forbes Realty Global Properties

Cyprus Tech Sector Propels Economic Growth and Reshapes Talent Landscape

by THEFUTURE.TEAM

May 17, 2025

Robust Economic Expansion

At the recent TechIsland Summit, Christophoros Anayiotos, Head of Deal Advisory at KPMG Cyprus, delivered a compelling assessment of the island’s burgeoning tech ecosystem. The 2024 report highlights that the technology sector now contributes 16% of Cyprus’ total Gross Value Added (GVA), up from 12.6% in the previous year. Overall, the sector’s economic impact is estimated at €8.5 billion, with direct contributions of €4.7 billion and an additional €3.8 billion generated indirectly.

Sectoral Contributions and Productivity

Using the Leontief Input-Output Model, the study covers key areas including ICT, professional scientific and technical activities, as well as tech-driven financial and insurance services. Notably, the ICT segment itself delivers €3.4 billion in direct GVA, while professional services and financial operations contribute €840 million and €505 million respectively. This horizontal spread of technological influence underscores the industry’s pivotal role in driving multifaceted business growth.

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Resilience During Economic Downturns

Even amid challenging economic conditions, the tech sector has demonstrated remarkable resilience. In the pandemic-stricken year of 2020, while the broader Cypriot economy contracted by 3%, the ICT sector experienced a robust growth rate of 21%. This momentum accelerated further to a striking 38% growth in 2021, reinforcing technology’s role as a stabilizing economic force.

Divergent Trends in Employment

Anayiotos’ analysis reveals that the tech sector now sustains over 62,000 full-time equivalent jobs in Cyprus, with 45,900 direct and 16,300 indirect roles. For every €1 million in increased sector revenue, approximately 13 jobs are generated. Despite the overall employment surge, there has been a significant shift in workforce composition. In 2015, Cypriot nationals comprised 88% of ICT employees; by 2024, this figure dropped to 50%, with non-EU nationals accounting for 42% and other EU citizens 8% of the workforce.

Cyprus as an EU Leader in ICT

Cyprus now holds a prominent place in the EU, ranking second in the EU27 for ICT’s share of national GVA at 11.4%, a notable rise from 9.4% in 2023. Furthermore, the island leads the bloc in ICT GVA growth, posting a remarkable 347% increase between 2015 and 2024. With a top-five ranking in GVA per ICT employee—whereby each contributes approximately €130,000, compared to the EU average of €116,000—the country’s technology workforce has expanded at an annual growth rate of 12.1%, from 9,300 in 2015 to 26,000 in 2024.

Strategic Imperatives for Future Growth

Anayiotos emphasizes the need for strategic enhancements to sustain this expansion. Key recommendations include improving air connectivity, joining the Schengen Area to boost mobility, and attracting more international banking institutions. Additionally, introducing tax incentives designed to favor stock options is considered crucial in luring and retaining skilled talent. Addressing the limited capacity in private education is also vital to accommodating professionals relocating with families.

Investing in Talent and Digital Transformation

Looking forward, investments in education and digital upskilling remain paramount. There is a clear call for a national initiative aimed at promoting STEM careers, elevating the digital skills of both students and educators, and accelerating the digital transformation of public services. Moreover, streamlining legal procedures will be critical to improving the overall business climate and competitiveness.