Exploration for oil and gas offshore the Republic of Cyprus is in a developing phase. A considerable amount of geophysical data which are available, the stable business environment and the attractive terms (zero taxation on revenues from offshore hydrocarbon exploitation) offered makes Cyprus highly preferable for hydrocarbon exploration. Moreover, a known hydrocarbon system exists in the vicinity with large hydrocarbon discoveries, while the Southeast Mediterranean region is a market with large potential for oil and gas trading.
The Council of Ministers is responsible for granting licences for prospection, exploration and exploitation of hydrocarbons. Applications for exploration and exploitation licences are accepted in licence rounds. At present, an Exploration License for Block No 12 has been granted to Noble Energy International Ltd on the 24th of October 2008.