Jerusalem (Platts)--5Nov2012/502 am EST/1002 GMT

Cyprus has rejected Turkey's reaction over the island last week awarding offshore exploration licenses charging the country with resorting to threats and blackmail, a Cypriot foreign ministry statement said on Sunday.

The Cypriot response followed a Turkish foreign ministry warning to foreign oil and gas companies of adverse consequences if they participate in oil and gas exploration in Cyprus' exclusive economic zone (EEZ). The Cypriot foreign ministry said the country has the sovereign and inalienable right to explore and exploit the natural resources in its own EEZ.

On Friday Turkish Energy Minister Taner Yildiz warned Italy's Eni that Turkey might have to reconsider its participation in the planned Samsun-Ceyhan oil pipeline.

"We will rethink its investments in Turkey if Eni is involved in (such plans)," said Yildiz, in remarks carried by daily newspaper Hurriyet, AFP reported.

On October 30 the Cypriot government awarded licenses for blocks 2 and 3 to a consortium headed by Italy's Eni and Kogas from South Korea. The block 9 license was granted to a consortium comprising France's Total, and two Russian companies, Novatek and Global Resources. The block 11 license was awarded to Total. Negotiations with the companies awarded licenses are due to begin next week.

The Cypriot foreign ministry charged that "Ankara was showing its real face by attempting to intimidate companies" that took part in the bidding in the second licensing round for offshore licenses.

On Saturday the Turkish foreign ministry said in a statement:"As has been repeated several times...the companies that cooperate with the Greek Cypriot Administration will be excluded from new energy projects in Turkey in the future," AFP reported.

--Neal Sandler, newsdesk@platts.com --Edited by Maurice Geller, maurice_geller@platts.com