VZCZCXYZ0008
PP RUEHWEB

DE RUEHAK #0474/01 0611403
ZNY CCCCC ZZH
P 021403Z MAR 07
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC PRIORITY 1176
INFO RUEHTH/AMEMBASSY ATHENS PRIORITY 7860
RUEHLB/AMEMBASSY BEIRUT PRIORITY 0511
RUEHEG/AMEMBASSY CAIRO PRIORITY 0377
RUEHLO/AMEMBASSY LONDON PRIORITY 3137
RUEHNC/AMEMBASSY NICOSIA PRIORITY 6642
RUEHIT/AMCONSUL ISTANBUL 2240

C O N F I D E N T I A L ANKARA 000474 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR OES CARVIS 
 
E.O. 12958: DECL: 03/01/2017 
TAGS: EPET EWWT PGOV PREL TU CY
SUBJECT: TURKEY FOCUSED ON POLITICAL PRESSURE TO STOP 
CYPRIOT OIL AND GAS EXPLORATION 
 
REF: NICOSIA 120 
 
Classified By: ECON/C Tom Goldberger for reasons 1.4 b and d. 
 
¶1.  (C) Summary:  Recently announced plans by the Republic of 
Cyprus to move ahead with a licensing round for offshore oil 
exploration (reftel) are of great concern to Turkey. 
Although Turkey claims rights to the area in question under 
the Law of the Sea, Foreign Ministry officials say they will 
rely on diplomacy, especially with Egypt and Lebanon, to 
prevent the planned exploration from moving forward.  Despite 
comments attributed to Turkish officials, Turkey's ability to 
undertake similar offshore activities is limited and there do 
not appear to be specific plans in the works.  Turkey may 
turn to a more aggressive strategy if it finds the 
international community is not taking its concerns seriously. 
 End summary. 
 
----------------------------------------- 
GOT RELYING ON POLITICAL PRESSURE FOR NOW 
----------------------------------------- 
 
¶2.  (C)  The Cypriot Government's announcement that it would 
go forward with a first licensing round for the exploration 
and exploitation of potential offshore oil and natural gas 
deposits (reftel) touched off great concerns among the 
Turkish public and Turkish officials.  Foreign Ministry 
Maritime Affairs officials told us Turkey would pressure 
Lebanon and Egypt to step back from the recently signed 
Exclusive Economic Zone (EEZ) agreements and consider the 
political implications.  They made the legal argument that 
since the Mediterranean is a semi-enclosed sea, the Law of 
the Sea requires that a country must consult all other 
countries bordering the sea when delineating jurisdiction, 
something they claim the GOC did not do prior to signing the 
EEZ agreements or announcing the tender.  In addition, Turkey 
claims jurisdiction for some areas west of 32 degrees, 16 
minutes, 18 seconds, and believes it has rights to six of the 
13 GOC-designated areas. 
 
¶3.  (SBU)  In addition to the legal argument, the MFA 
stressed the political argument that the Greek Cypriots do 
not exercise sovereignty over the entire island and therefore 
cannot sign agreements that affect the northern half without 
taking the views of the Turkish Cypriots into consideration. 
Furthermore, they believe the agreements increase incentives 
for Greek Cyprus to continue to deflect efforts to find a 
political solution to the Cyprus issue.  Turkish objections 
have been conveyed to the UN and other internty of the 
Cyprus problem," and "refrain from actions that may harm the 
search for a comprehensive settlement." 
 
--------------------------------------------- --- 
LARGE COMPANIES INTERESTED BUT SITUATION COMPLEX 
--------------------------------------------- --- 
 
¶4.  (C)  BP representatives in Turkey told us BP is 
interested in the Cyprus off-shore blocks because of their 
proximity to Egypt Nile delta off-shore gas fields on which 
they are active.  They described the Cyprus blocks as 
"frontier" because they are completely unexplored.  BP said 
that the Turkish embassy in London had approached their UK 
headquarters with Turkey's concerns.  BP informed told the 
embassy the company had decided to purchase the seismic data, 
as a prerequisite to potential participation in the tender - 
after a six-month analysis period.  BP characterized this as 
a long-term process and noted they would assess all the 
information before taking any other action.  BP is well aware 
of the importance of Turkey to its global operations, 
including the BTC oil pipeline, the South Caucasus gas 
pipeline, and Bosphorus shipping, and these would factor into 
a decision on tender participation.  BP is has also made 
informal contacts with the Turkish navy, which said that it 
is monitoring the situation closely, but has no intention to 
intervene with force. 
 
¶5.  (C)  Perhaps mindful of the inconsistency, MFA and 
Turkish energy ministry officials downplayed initial 
statements attributed to Turkish officials that state oil 
company TPAO would pursue its own hydrocarbon exploration in 
the disputed area.  They told us there are no specific plans 
in this regard and note that TPAO has limited capacity of its 
own, although it could always work with foreign contractors. 
BP said that TPAO has an old seismic vessel which had done 
limited exploration in the Aegean.  The company also said 
that the waters north of the "TRNC" are less attractive 
geologically. 
 
------------------------------------------- 
WITH THE CYPRUS ISSUE, ANYTHING IS POSSIBLE 
---------------------------

a political settlement to the 
Cyprus question.  If as the situation unfolds the GOT feels 
that the international community, including its Mediterranean 
neighbors, is not seriously considering its concerns, the 
Turks may deploy a more aggressive strategy that could 
escalate tensions. 
 
Visit Ankara's Classified Web Site at 
http://www.state.sgov.gov/p/eur/ankara/ 
 
WILSON