ExxonMobil could partner with Eni and Total to jointly develop natural gas deposits in Cyprus

NICOSIA, Cyprus (AP) – ExxonMobil may partner with a consortium formed by Italy's Eni and France's Total to jointly develop gas deposits they have discovered near each other off the southern coast of Cyprus, the Cypriot energy minister said Friday.

Minister George Papanastasiou said that ExxonMobil is in discussions with the Eni-Total consortium about working together to bring their discoveries to the market.

He said that the potential cooperation could be greatly improved if the exploratory well ExxonMobil plans to drill early next year hits more hydrocarbons.

Cypriot officials have repeatedly said offshore gas installations could bolster Europe's efforts to find alternative energy sources following Russia's war in Ukraine.

Papanastasiou said this after ExxonMobil's Vice President of Global Exploration John Ardill held talks with Cypriot President Nikos Christodoulides in the capital, Nicosia.

ExxonMobil's new well, called Pegasus, will be drilled near the existing Glaucus deposit estimated to contain 5 to 8 trillion cubic feet of gas in an area where the company and its partner Qatar Petroleum have exploration licenses.

The area, known as Block 10, is directly south of Block 6 where the Eni-Total consortium discovered the Cronos deposit of approximately 2.5 trillion cubic feet of gas.

Papanastasiou said some form of infrastructure could connect the nearby Glaucus and Pegasus deposits if they are found to contain sufficient gas reserves.

Separately, ExxonMobil will drill another new exploration field called Electra in January of next year in Block 5 which is north of Block 10 and west of Block 6.

Ardill said ExxonMobil will consider different development options once exploration of the newly drilled wells is completed by the middle of next year.

Papanastasiou said those options could include turning the gas into liquids through offshore installations placed on wells or transferring the gas to an offshore facility in Cyprus to be processed to meet domestic energy needs or sent abroad.

ExxonMobil and Qatar Petroleum have exploration licenses for two blocks, the Eni-Total consortium for seven blocks and the Chevron-Shell partnership for one.

Christodoulides said last week that Cypriot authorities are in early talks with several unidentified energy companies from the Persian Gulf states regarding exploration licenses within the exclusive economic zone of Cyprus.