ExxonMobil is in discussions with a consortium led by Italy’s Eni and France’s Total to jointly develop substantial gas deposits discovered off Cyprus’ southern coast, according to Cypriot energy minister George Papanastasiou.
The collaboration could accelerate the commercialization of the reserves, potentially enhancing Europe’s energy security amid the ongoing energy crisis triggered by Russia’s invasion of Ukraine.
The partnership centers on discoveries made in the region’s offshore fields, specifically in Cyprus’ Block 6 and Block 10.
ExxonMobil’s planned drilling of a new exploratory well, called Pegasus, is seen as a key step in advancing the joint development of the gas fields.
People at a dock with a drilling platform in the background in Limassol, Cyprus. ExxonMobil could partner with Eni and Total to develop gas deposits off the country’s southern coast.
People at a dock with a drilling platform in the background in Limassol, Cyprus. ExxonMobil could partner with Eni and Total to develop gas deposits off the country’s southern coast.
Petros Karadjias/AP, file
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If Pegasus hits a good amount of hydrocarbon deposits, it could provide a major boost to the proposed partnership, Papanastasiou noted.
“Discussions are ongoing, and if ExxonMobil’s new well proves successful, we could see a substantial increase in the area’s gas reserves,” said Papanastasiou after meeting with ExxonMobil’s vice president for global exploration, John Ardill, in Nicosia, Cyprus’ capital.
ExxonMobil’s Pegasus well will be drilled near the Glaucus deposit in Block 10, which is estimated to contain between 5 and 8 trillion cubic feet of gas.
ExxonMobil and its partner Qatar Petroleum hold exploration licenses for the area.
Directly south, in Block 6, the Eni-Total consortium has discovered the Cronos deposit, with an estimated 2.5 trillion cubic feet of gas.
An offshore drilling rig in the waters off Limassol in July 2020. Cypriot energy minister George Papanastasiou said ExxonMobil is in talks with the Eni-Total consortium.
An offshore drilling rig in the waters off Limassol in July 2020. Cypriot energy minister George Papanastasiou said ExxonMobil is in talks with the Eni-Total consortium.
AP PhotoPetros Karadjias, File
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The proximity of these two fields suggests that a shared infrastructure could link Glaucus and Pegasus if the new well proves to have substantial reserves.
Alongside Pegasus, ExxonMobil is also preparing to drill another well, Electra, in Block 5 in January.
This block lies north of Block 10 and west of Block 6, further expanding ExxonMobil’s footprint in the region’s rich gas fields.
The company plans to assess the results of both Pegasus and Electra by mid-2024, at which point development options will be evaluated.
These options could include converting the gas into liquefied natural gas (LNG) through a floating facility or processing it at an onshore facility in Cyprus to meet domestic energy needs or for export.
Cypriot authorities have emphasized the strategic importance of these offshore reserves, viewing them as critical to Europe’s long-term energy diversification.
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The island’s energy resources are seen as part of broader regional efforts to reduce dependency on Russian energy supplies, a priority that has gained renewed urgency since the war in Ukraine began.
ExxonMobil and Qatar Petroleum hold exploration licenses for two blocks in the region, while Eni and Total control seven blocks.
Additionally, a Chevron-Shell partnership holds rights to one block.
Cyprus is also in early discussions with energy companies from the Persian Gulf about exploring other parts of its exclusive economic zone, potentially expanding its role as an energy hub in the Mediterranean.
The outcome of these developments could have significant implications for Europe’s energy landscape in the coming years, offering a potential new source of natural gas to meet the continent’s growing demand and diversify its energy imports.
This article contains additional reporting from the Associated Press.