ExxonMobil is in discussions with a consortium of Italy’s Eni and France’s Total to potentially collaborate on developing natural gas deposits off the southern coast of Cyprus. The Cypriot energy minister, George Papanastasiou, confirmed that the companies are exploring the possibility of working together to bring their respective gas discoveries to market.
The partnership could gain momentum if an exploratory well planned by ExxonMobil in the coming months uncovers additional hydrocarbon reserves. The well, named Pegasus, is set to be drilled near the Glaucus deposit, which is estimated to contain between 5 and 8 trillion cubic feet of gas. ExxonMobil and its partner Qatar Petroleum currently hold exploration licenses for this area, known as Block 10, which is situated south of Block 6. Block 6 is where the Eni-Total consortium has made its own discovery, the Cronos deposit, which holds an estimated 2.5 trillion cubic feet of gas.
Papanastasiou suggested that infrastructure linking the Glaucus and Pegasus deposits could be developed if the latter proves to have sufficient gas reserves. ExxonMobil is also planning to drill another exploratory well, Electra, in Block 5, located north of Block 10 and west of Block 6. This well is expected to be drilled in January 2025.
Following the completion of assessments for these new wells by mid-2025, ExxonMobil will consider various development options. These could include liquefying the gas for export via a floating facility or transporting it to an onshore plant in Cyprus for both domestic use and export. The findings from these explorations could play a significant role in Europe’s efforts to diversify its energy sources, especially in the wake of the energy crisis exacerbated by the war in Ukraine.
Cyprus has long regarded its offshore gas reserves as a key asset to enhance energy security in Europe, and authorities have been in discussions with several unnamed energy companies from the Persian Gulf regarding exploration licenses in the island’s exclusive economic zone.