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Good stuff. Very interesting.

About the political parameters in regard to the north and south of Cyprus, whatever gas profits are to be made by the gov't were always going to be divided on a per capita basis between the southerners and the northerners, with the northern Cypriot profits held in escrow until reunification. This has been the law all along, and it was similar to the property law which conveys that the gov't is the manager of properties held by Turkish Cypriots until that time that they return to the south. So, Dunbar's suggestion is already in place. (Frankly, I find Dunbar's articles a little exasperating since he does great research and journalism on a subject (for instance, the Greek-Goldman Sachs deal of 2003) only to forget what he's written in a future article).

The problem with the Cyprus's gas reserves is that Turkey does not recognize islands as land masses with rights that extend to the next relevant land mass. So, Cyprus believes it shares an economic demarcation zone with Egypt due south. But Turkey believes it only has the right to explore coastal waters, and that Turkey's landlocked position to the north is the only relevant fact that establishes Turkey's sea zone with Egypt.

Turkey has adopted such a policy because of all the Greek islands in the Aegean would render the Aegean into an exclusive zone for Greece.

by Upstate NY on Thu Mar 28th, 2013 at 11:10:10 AM EST

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