The government of Cyprus, ExxonMobil and QatarEnergy have officially declared the natural gas discoveries located off the coast of Cyprus to be commercially viable. This formal declaration of commercial discovery, signed in Nicosia, transitions the Glaucus and Pegasus gas discoveries from the exploration phase into the project development stage. This transition is expected to support the national objective of establishing a significant Mediterranean energy hub in the region.
Strategic Development and Production Timeline
“This has been the culmination of eight years of work since we were awarded the blocks in 2017, discovery in 2019, second discovery last year,” John Ardill, ExxonMobil’s vice president for exploration and new ventures, said.
“This declaration of commerciality takes us from looking for energy to developing energy,” Ardill added.
Cypriot President Nikos Christodoulides described the agreement regarding the Cyprus gas fields as a milestone of strategic importance for the nation. Further plans include final investment decision for the assets in 2029, with production slated for a start in 2033.
Infrastructure and Regional Energy Security
ExxonMobil plans to resume drilling activities later this year as part of the Pegasus appraisal program, while also expanding exploration into Blocks 4 and 10A of the Cypriot exclusive economic zone (EEZ).
The preferred development option involves a subsea pipeline connecting the Cyprus gas fields to existing liquefied natural gas infrastructure in Egypt, utilizing established bilateral agreements and current facilities. While an onshore terminal remains a possibility, it would require larger reserves than those currently identified.
Cyprus’ Energy Minister Michael Damianos announced that Cyprus expects to launch a new offshore licensing round within the next two years. Cyprus is strengthening its poition as a strategic contributor to the energy security Europe requires. It has been fifteen years since the first Cyprus gas discovery at the Aphrodite field.
To that end, Cyprus has delineated its EEZ INTO 13 offshore exploration blocks with licenses to varipus international energy companies.
