An American company is soon expected to start exploring the Cyprus coast for oil and natural gas, the US Ambassador in Cyprus said yesterday.

Speaking at the Cyprus International Fair, Ambassador Frank Urbanic revealed that the American company planned to start exploring the island's south west coast in the near future.

"US investments in Cyprus amount to more than $379 million," said Urbanic. "This figure will soon increase substantially as an American energy firm begins exploring for oil and gas off Cyprus' southwest coast."

He explained that the specific company had participated in the tenders’ procedure that started a few years back for oil exploration in Cyprus and had achieved the right to start exploring following negotiations with the Commerce Ministry.

Commenting on the island’s politics, Urbanic was asked about UNFICYP and plans to extend its mandate for another six months.

He said Cyprus was clearly a state in itself and it didn’t need UNFICYP in order to exist.

The Ambassador explained that UNFICYP’s service was renewed every six months, as a fixed procedure, and there was nothing unusual in that. He added that he didn’t see any possibility of the peacemaking force’s mandate not being extended.

“Cyprus is clearly a state. Cyprus does not need UNFICYP to exist. What I am trying to do is break this connection,” said Urbanic. “Cyprus is a member of the EU and there is no chance of that being altered.”

Asked whether the force’s conditions were being reassessed behind the scenes and without the Cypriot government being aware, Urbanic said there were no secrets in the UN and the draft bill for UNFICYP’s renewal was being examined in New York.

He said it was standard procedure for a draft bill to be prepared, discussions to ensure and eventually be adopted or rejected. “But I don’t see any chance in it not being extended.”

Asked to comment on Turkey’s somewhat renewed relations with the US, Urbanic said this should be of no surprise to anyone, adding that good relations with Turkey were to everyone’s benefit.

“You often urge us to talk with Turkey and we couldn’t talk with Turkey if we didn’t have relations with them.”

Earlier on, Urbanic had presented his country’s pavilion at the State Fair, underlining the good trade relationship between the US and Cyprus.

Bilateral trade statistics for 2008 and recent years show that the United States supplied $188.5 million worth of goods to Cyprus last year, making up 1.7 per cent of the country’s total imports.

Regarding Cypriot exports to the US, in 2008 the United States absorbed $11.7 million or 0.7 per cent of the island's total exports. Many Cypriot products, such as dairy products, salt, and mineral substances have increased their sales in the United States in recent years, while others, such as fresh fish hold potential for growth.

According to the Ambassador, U.S. exports to Cyprus grew by 73.6per cent last year. This was partly to do with the weaker dollar.

“Also, these figures include imports to Cyprus for re-export to other countries, especially precious metals which recorded a phenomenal rise in 2008,” said Urbanic.

He added: “The United States is also a reliable export market for Cyprus, with considerable untapped potential. Many Cypriot products, such as dairy products, salt, and mineral substances have been increasing their sales in the United States in recent years, while others, such as fresh fish hold much potential for growth. The owner of a major Cypriot dairy company has told us he can’t keep up with the growing U.S. demand for halloumi.”

Another step in improving relations between the two nations was the recent signing of a Science and Technology Cooperation Agreement. “This agreement – incidentally, the first signed by the Obama administration -- will strengthen the scientific and technological capabilities of both our countries by providing means for our scientists and technology companies to more easily work together,” said Urbanic.

The Agreement, he added, has already led to new collaborations between the States and Cyprus.

In partnership with the University of Pittsburgh, a local business leader in Cyprus is establishing a world-class medical centre in Paphos, and IBM has signed a cooperation agreement with The Cyprus Institute on the development of supercomputing technologies.

“We believe this is just the beginning.”

Concluding, the US Ambassador thanked Cyprus for helping thousands of American nationals to evacuate Lebanon in the summer of 2006

“It would be remiss of me to close without referring to an event that happened here, at the State Fair grounds, three years ago,” said Urbanic. “Although not a commercial matter, this event illustrates the ties between our two countries. I am referring, of course, to the evacuation of thousands of American civilians from Lebanon in the summer of 2006. “

He added, “We, as a nation, will never forget the hospitality and assistance of the Cypriot people during our citizen’s time of need.”