ExxonMobil and Qatar Energy have signed an agreement with Cyprus to declare the commercial viability of two offshore gas fields, marking a milestone in the island's efforts to develop its offshore gas reserves.
The “declaration of commercial viability” signed in Nicosia on Tuesday is a step forward in a project pivotal to the region’s ambitions to supply Europe with more gas.
ExxonMobil announced discoveries in two offshore fields known as "Glaucus" and "Pegasus," with Cypriot officials stating that the combined size of the discoveries could range between eight and nine trillion cubic feet.
Cypriot President Nicos Christodoulides, speaking in Nicosia alongside representatives from ExxonMobil and Qatar Energy, said the agreement signed today "represents a major step towards establishing the Eastern Mediterranean as an alternative energy corridor for supplying Europe."
Officials indicated that some additional drilling operations would be required in the two offshore fields before moving to the initial engineering and design phase.
John Ardell, vice president of ExxonMobil, said the final investment decision is expected around 2029, with production starting in 2033.
Ardell explained that the reserves from the Glaucus and Pegasus fields will most likely be transported via a pipeline connected to Egypt.
Qatar Energy signed a preliminary agreement with ExxonMobil and the Egyptian government in May to study the development and marketing of gas discoveries in Cyprus using Egypt’s existing gas and liquefied natural gas infrastructure.
Other discoveries in Cyprus are also being considered for linking to Egypt’s underutilized infrastructure, such as the Aphrodite field, whose reserves range between 3.5 and 4.5 trillion cubic feet and in which Chevron has obtained a license to operate, and the Kronos field, whose reserves exceed three trillion cubic feet and in which the Italian company Eni has obtained a license to operate in partnership with the French company Total.
