Potential Partnership in Gas Exploration
ExxonMobil is exploring a partnership with the Italian company Eni and the French firm Total to jointly develop natural gas deposits located off the southern coast of Cyprus. Cypriot Energy Minister George Papanastasiou confirmed that discussions are ongoing between ExxonMobil and the Eni-Total consortium regarding potential collaboration to bring their gas discoveries to market.
Boost from New Exploratory Drilling
The collaboration could gain momentum if ExxonMobil successfully drills an exploratory well in early 2025 that uncovers additional hydrocarbons. Minister Papanastasiou emphasized that such offshore gas deposits could significantly enhance Europe’s energy security, particularly in light of the ongoing fallout from Russia’s war in Ukraine.
Significant Discoveries and Strategic Location
ExxonMobil plans to drill a well named Pegasus near the existing Glaucus deposit, which is estimated to contain between 5 and 8 trillion cubic feet of gas. This area, known as Block 10, is adjacent to Block 6, where the Eni-Total consortium has discovered the Cronos deposit, which holds an estimated 2.5 trillion cubic feet of gas. Papanastasiou suggested that if the Pegasus well yields adequate reserves, infrastructure could connect it to the nearby Glaucus deposit.
Upcoming Drilling and Development Options
In addition to the Pegasus well, ExxonMobil is set to drill another exploratory well named Electra in January 2025, located in Block 5, which sits to the north of Block 10. John Ardill, ExxonMobil’s Vice President for Global Exploration, stated that the company would evaluate various development options once the results of these new wells are available by mid-next year.
Expanding Opportunities in the Region
Papanastasiou outlined several potential options for utilizing the gas, including liquefying it at a floating installation near the wells or transporting it to an onshore facility in Cyprus for processing to meet local energy demands or for export. In addition to ExxonMobil and Qatar Petroleum, which hold exploration licenses for two blocks, the Eni-Total consortium is involved in exploring seven blocks, and a Chevron-Shell partnership manages one. Cypriot authorities are also in preliminary discussions with several unidentified energy companies from the Persian Gulf to explore new licenses in Cyprus’ offshore exclusive economic zone.
SOURCE: Ref Image from Reuters
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