Halliburton’s Senior Vice President for Europe and Africa Mark Richard met with President Nicos Anastasiades and Energy Minister Yiorgos Lakkotrypis at the Presidential Palace to close the deal last week. Halliburton’s base in Cyprus will service the entire eastern Mediterranean region, which is already transforming into a key area for oil and gas exploration activities. Cyprus’ political stability and strategic location in the eastern Mediterranean makes it an attractive place from which to base operations.

Richard said the multinational will base its operations in Larnaca. Halliburton currently operates in more than 80 countries and provides drilling services and gear for companies prospecting for hydrocarbons. Halliburton’s activities in Cyprus will most likely consist of drilling gear storage and opening up offices.

Speaking after the meeting, the Halliburton Vice President said: “It is a pleasure to be in Cyprus for the start of our operations to support our customers and the country of Cyprus in the ongoing efforts to hopefully produce oil and gas here in the Mediterranean.” The Halliburton official thanked the government “for the tremendous support and hospitality in helping us to get started here in the country. Hopefully, this is the start of many good years to come.”

Asked how many people will be employed in Cyprus by the company, Richard said: “That depends on how much work we actually win from competitive tenders with our customers, but it will be considerable at one point in time.” Halliburton is expected to announce shortly its plans for collaboration with Cyprus-based companies and universities, as part of its operational plans for the region. The giant’s operations are due to start in Larnaca before summer’s end.

Energy Minister Giorgos Lakkotrypis also welcomed the news, wishing the company the best in servicing hydrocarbons exploration in Cyprus’ Exclusive Economic Zone (EEZ) and thanked them for their confidence in Cyprus’ potential. Lakkotrypis expressed his pleasure to receive “such an important company” that will be active in providing support services for hydrocarbon explorations within Cyprus’ EEZ.

“The presence of such acompany constitutes a vote of confidence for Cyprus and the prospects of the Cypriot economy, something which we very much need,” said the minister. He also pointed out that the talks with the company began many months ago with the involvement of the President of the Republic himself, and added that the deal represents “a happy conclusion and we move forward with the planning of the company for its establishment here in Cyprus.”

The minister said he hoped to have something similar to announce soon, a probable reference to the pending agreement with another major oilfield services giant Schlumberger, which is expected to be sealed before the end of the May.

Former head of the Cyprus National Hydrocarbons Company, Charles Ellinas, also confirmed both Halliburton and Schlumberger have plans for Cyprus. Ellinas said Halliburton has been looking to rent land for their base of operations in the Larnaca area, which is the principle area for companies servicing the explorations efforts in Cyprus’ EEZ.

Halliburton estimates around 50 to 60 new wells will be drilled in the eastern Mediterranean (Israel, Cyprus and Lebanon) in the next few years, possibly racking up $5bn to $7bn in drilling costs, says Ellinas, and as a major player in the industry has an interest in being part of these developments. Once the company secures contracts for its services, local companies would have an opportunity to provide support services like storage space, servicing of equipment and providing supplies – which in turn will help the local economy.

Finance Minister Harris Georgiades has also highlighted the huge importance of hydrocarbons to Cyprus’ economic prospects, reminding however that the developing energy sector is also a challenge requiring careful handling and a well-prepared strategy.

“We are not and should not be basing our financial recovery on natural gas prospects alone. It should be based on facts and not on political rhetoric,” he said. Georgiades said his ministry would submit a legal bill by the end of 2014 to set up a national fund to handle hydrocarbons revenues in a transparent manner for both current and future generations.