Cyprus at a Glance_EN

Energy In order to strengthen the security of energy supply, improve the country’s energy efficiency and enhance its geostrategic role, it was decided to commence hydrocarbon exploration within Cyprus’ EEZ. To date, three Licensing Rounds for hydrocarbon exploration have been launched: in 2007, 2012 and 2016. The first two Licensing Rounds led to the completion of six Exploration and Production Sharing Agreements for an equal number of Blocks of the Cyprus EEZ, while the third round concluded three additional contracts. In June 2015, the commerciality of the Aphrodite gas field was announced in exploration block 12 confirming the existence of recoverable natural gas reserves of about 4.5 trillion cubic feet. This declaration constituted a significant milestone to Cyprus’ transition from the hydrocarbons exploration phase to that of exploitation. Additionally, in February 2018, the initial analysis of results of the ‘Calypso 1’ exploratory drilling, within Block 6 of the Cyprus EEZ, revealed a new gas discovery, which is being evaluated. At the same time, the Government is in the process of exploring options of best conduct regarding its economic policy on prospection, discovery and exploitation of hydrocarbons, while promoting the intermediate prospects that are being created for investments along the entire chain of the hydrocarbons industry. Secondary Sector The secondary sector (mainly manufacturing and construction) in 2016 accounted for 11,3% of GVA. The main industries are food and beverages, chemical, pharmaceutical, rubber and plastic products, non-metallic mineral products and metal products. Industrial Development The regeneration and modernization of industry is an important pillar of development for the government. The main goal is to gradually increase the contribution of industry to GVA. To achieve this goal, the Government is preparing a New Industrial Policy aimed at facilitating and developing industrial activity through the implementation of a targeted action plan. The policy focuses on resolving the structural problems of industry, developing sustainable development / production infrastructures, improving the industrial environment, digital transformation, skills development, increased access to finance and boosting trade, extroversion and investment. 27