The hydrocarbon exploration and exploitation activities in the Republic of Cyprus are regulated by the Hydrocarbon (Prospection, Exploration and Exploitation) Laws of 2007 to 2015 (L.4(I)/2007, L.126(Ι)/2013, L.29(Ι)/2014 & L.186(Ι)/2015) and the Hydrocarbon (Prospection, Exploration and Exploitation) Regulations of 2007 to 2019 (P.I.51/2007, P.I.113/2009, P.I.576/2014, and P.I.248/2019).
The provisions of the European Union Directive on the conditions for granting and using authorizations for the prospection, exploration and production of hydrocarbons (Directive 94/22/EC) have been incorporated into the Cypriot Law, by the abovementioned legislation.
The activities pertaining to hydrocarbons prospection, exploration and exploitation are also subject to the general national legislation on taxation, environmental protection, health and safety. Exception is the corporate income tax applicable to the licensee, which is included to the Republic of Cyprus’ share of the hydrocarbon revenues.
The ownership of hydrocarbons wherever they are discovered in Cyprus, including the Territorial Waters, the Continental Shelf and the Exclusive Economic Zone of the Republic of Cyprus, shall be deemed to be and always to have been vested in the Republic of Cyprus.