ANKARA, Sept 21 (Reuters) - Turkey signed a deal with the breakaway Turkish Cypriot state on Wednesday to pave the way for offshore gas exploration in a move set to escalate regional tensions over Mediterranean energy reserves.
On Tuesday, the Greek Cypriot government, which has been at loggerheads with Turkey since its military invasion of north Cyprus in 1974, said drilling had begun in a southeastern offshore block, adjoining a gas field in Israeli waters reputed to be the world's largest find of the past decade.
Turkish Prime Minister Tayyip Erdogan described the offshore gas drilling by Cyprus and Turkey's estranged ally Israel as "madness" before signing the deal with the Turkish Cypriots to clear the path for Turkish exploration off northern Cyprus.
"The continental shelf delimitation agreement between Turkey and Turkish Republic of Northern Cyprus has been signed now in New York between Erdogan and Dervis Eroglu," an official at the prime minister's office told Reuters, referring to the Turkish Cypriot leader.
http://uk.reuters.com/article/2011/09/21/turkey-cyprus-idUKL5E7KL60K20110921