ExxonMobil Explores Partnership with Eni and Total for Cyprus Gas Development

ExxonMobil in Talks for Cyprus Gas Deposits Development
ExxonMobil is considering a partnership with Italian energy giant Eni and French oil company Total to jointly develop natural gas reserves off the southern coast of Cyprus. The collaboration is part of ongoing efforts to tap into newly discovered hydrocarbon deposits in the region, with Cyprus becoming a crucial focal point for Europe’s energy diversification post-Russia-Ukraine war.

Exploratory Wells Could Boost Collaboration
According to Cypriot Energy Minister George Papanastasiou, ExxonMobil is in discussions with the Eni-Total consortium about combining their resources and efforts to bring these offshore gas deposits to market. A significant development could come with the drilling of ExxonMobil’s new exploratory well, Pegasus, which is slated for early next year. If successful, it could strengthen the case for collaboration between the companies and further enhance gas reserves in the area.

Gas Reserves in Strategic Location
The Glaucus deposit, located in Block 10 south of Cyprus, is one of the main targets for ExxonMobil and its partner Qatar Petroleum, with estimates placing the gas reserves between 5 and 8 trillion cubic feet. Block 6, where Eni and Total have discovered the Cronos deposit containing an estimated 2.5 trillion cubic feet, lies directly adjacent. If the new Pegasus well yields promising results, the two areas could be linked through infrastructure to maximize gas extraction and market potential.

Strategic Development Options for Gas Export
ExxonMobil has additional plans to drill a well, Electra, in Block 5, situated to the north of Block 10 and west of Block 6. Once these exploratory wells are assessed by mid-2024, ExxonMobil will evaluate development options, which could include converting the gas into liquefied natural gas (LNG) for export or transporting it to Cyprus for domestic use. The Cypriot government continues to explore opportunities for expanding energy exports through a variety of potential infrastructure solutions, including offshore and onshore processing facilities.

Regional Energy Strategy
Cyprus has become a key player in Europe’s energy strategy, with several international companies—including ExxonMobil, Eni, and Total—holding exploration licenses across various offshore blocks. Discussions are also underway with additional energy companies from the Persian Gulf, aiming to expand exploration efforts within Cyprus’ exclusive economic zone. The successful development of these gas reserves could provide Europe with a vital alternative energy source, reducing dependency on Russian energy supplies.