ExxonMobil is in talks with Italy’s Eni and France’s Total to jointly develop natural gas deposits located off Cyprus’ southern coast. Cypriot Energy Minister George Papanastasiou confirmed the ongoing discussions, which aim to bring the discoveries made by each company to market.
The potential collaboration could gain momentum if an exploratory well planned by ExxonMobil for early next year, called Pegasus, uncovers additional gas reserves. This well is 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, hold exploration rights to this area, known as Block 10. The Eni-Total consortium has also made a major discovery in the nearby Block 6, with the Cronos deposit holding an estimated 2.5 trillion cubic feet of gas.
Papanastasiou mentioned that infrastructure could be built to connect the Glaucus and Pegasus deposits if the latter is confirmed to contain substantial reserves. Additionally, ExxonMobil plans to drill another exploratory well, Electra, in Block 5, located north of Block 10, in January 2025.
ExxonMobil will consider various development options once assessments of the new wells are completed by mid-2025. These could include liquefying the gas for export through a floating facility or transporting it to onshore facilities in Cyprus for both local consumption and export.
Cyprus has been positioning its offshore gas reserves as a key contributor to Europe’s energy diversification strategy, particularly as the continent seeks to reduce dependence on Russian energy supplies. The Cypriot government is also in early-stage talks with several unidentified energy companies from the Persian Gulf for exploration licenses in the country’s exclusive economic zone.