Skip to main content
Perspective:
Perspective
08 Mar 2022

Oil & Gas in Cyprus

Where potential lies

The development of the oil & gas sector in Cyprus continues. The recent discoveries of hydrocarbons within Cyprus Exclusive Economic Zone (“EEZ”) has attracted a lot of attention internationally and has created locally a lot of optimism about the future. Over the past decade, Cyprus has awarded exploratory licence agreements in the Cypriot EEZ and entered into production sharing contracts (“PSC”) with a number of global oil & gas companies that are some of the major industry players. Over this period, there was a substantial exploration and evaluation activity undertaken by the operators in offshore Cyprus.

There is no specific regime within Cypriot Income Tax Law concerning the oil & gas sector. Taxable profits from trading operations are taxable at the normal corporate income tax rate and taxable profits are determined under a framework of deductions for expenses wholly incurred in the derivation of income and capital allowances for assets used in the trade.

 

Deloitte offering

 

Deloitte's Oil & Gas practice has expert presence in every continent and each major Oil & Gas center around the globe. Our global network is consist of 3,600+ experienced professionals that combine a dedicated group with subject matter specialists in the various oil & gas sectors.

In Cyprus, Deloitte provides a complete range of advisory and compliance services which are needed by any international oil & gas industry participant planning activities in Cyprus. Our services span the fields of audit & assurance, financial advisory, consulting, corporate and personal taxation, VAT and human capital services, which equip our clients with the prerequisites to succeed.

We were involved in the oil & gas industry from the very beginning. We are a professional services firm with actual, on the ground experience in all facets of the oil & gas industry in Cyprus for the past six years serving the major industry participants and suppliers.

Did you find this useful?

Yes
No

Thanks for your feedback

Your feedback is important to us

To tell us what you think, please update your settings to accept analytics and performance cookies.

Need help updating cookies?

Get in touch

George Pantelides

Partner | Consultative Businesses Leader

Our thinking

Catalyse the Clean Hydrogen Value Chain Using Business Model Innovation

Clean hydrogen: What comes first, supply or demand? Advance your clean hydrogen strategy with our roadmap for businesses.
Perspective
10 minute read

The Cyprus Tonnage Tax system

Introducing the new tonnage tax system in Cyprus for shipping activities, effective 29 April 2010 and providing answers to questions about it for shipping activities.
Perspective

Hydrogen

Decarbonisation has become a global imperative. The COP27 conference of the UNFCCC sought to push the Paris Agreement targets further and move from pledges to practical action, with the drive to implement decarbonisation solutions and lower emissions now a priority.
Perspective
7 minute read

Decarbonising the steel value chain: Forging new paths together | Deloitte Global

Decarbonisation has become a global imperative and a priority for governments, companie and society at large. This report discusses how the decarbonisation of steel can be accelerated by activating the value chain and how collaboration plays a critical role in making this happen. It also identifies some major barriers and proposes potential solutions to overcome these challenges in order to achieve net-zero carbon emissions.
Perspective
10 minute read
Explore our thinking