ExxonMobil and QatarEnergy Declare Cyprus Offshore Gas Marketable in Landmark Deal
Key Developments in Cyprus Offshore Gas Reserves
NICOSIA, June 30 (Reuters) - Energy conglomerates ExxonMobil and QatarEnergy signed a deal with Cyprus on Tuesday declaring prospects in two offshore gas fields marketable, a milestone in efforts by the east Mediterranean island to develop offshore gas reserves.
The Declaration of Marketability signed in Nicosia advances a project central to the region's ambitions to supply more gas to Europe.
Major Discoveries and Estimates
• ExxonMobil has reported discoveries in two offshore blocks in fields known as Glaucus and Pegasus.
• Cypriot officials say the combined discoveries could be between 8 and 9 trillion cubic feet.
Significance for European Energy Supply
• The deal signed on Tuesday "represents a major step towards establishing the Eastern Mediterranean as a credible alternative energy corridor for Europe", Cyprus President Nikos Christodoulides said in Nicosia alongside representatives of ExxonMobil and QatarEnergy.
Next Steps and Project Timeline
• Some additional drilling on the two offshore fields would be required before moving into the front-end engineering and design (FEED), officials say.
• A final investment decision is anticipated around 2029 and production in 2033, said ExxonMobil Vice President and head of global expansion John Ardill.
Regional Partnerships and Infrastructure
• QatarEnergy signed a preliminary deal with ExxonMobil and Egypt's government in May to study the development and commercialisation of gas discoveries in Cyprus using Egypt's existing gas and LNG infrastructure.
Pipeline and Tie-Back Strategies
• The reserves from Pegasus and Glaucus would probably be delivered with a pipeline tie-back to Egypt, Ardill said.
• Tie-backs to underutilised infrastructure in Egypt are also being considered for other Cypriot discoveries; approximately 3.5-4.5 tcf in Aphrodite, licenced to Chevron, and the more than 3 tcf Cronos discovery licenced to Italy's Eni with France's Total.
(Writing by Michele Kambas; Editing by Emelia Sithole-Matarise)
