Cyprus, Energy Giants Declare Gas Fields Commercially Viable, Target 2033 Production

Cyprus, alongside energy giants ExxonMobil and QatarEnergy, has officially declared its offshore natural gas fields commercially viable. The announcement, made Tuesday in Nicosia, sets a target of 2033 for production to begin, marking a significant step in the nation's long-held ambition to become an energy hub in the eastern Mediterranean.

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This has been the culmination of eight years of work since we were awarded the blocks in 2017, discovery in 2019, second discovery last year.

The declaration transforms the Glaucus and Pegasus gas discoveries from mere exploration prospects into active development projects. John Ardill, ExxonMobil's vice president for exploration and new ventures, highlighted the eight years of work leading to this "historic point." He noted that the company expects to make a final investment decision in 2029, with production commencing in 2033. ExxonMobil also plans to resume drilling later this year and expand exploration into other offshore blocks.

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This declaration of commerciality takes us from looking for energy to developing energy. It is a very historic point.

Cypriot President Nikos Christodoulides hailed the agreement as a "milestone of strategic importance." The primary development strategy involves a subsea pipeline connecting the Cypriot fields to existing liquefied natural gas infrastructure in Egypt. An onshore LNG terminal in Cyprus would necessitate larger reserves than currently identified. Energy Minister Michael Damianos indicated that Cyprus plans to launch a new offshore licensing round within the next two years, as the nation seeks to bolster Europe's energy security following Russia's invasion of Ukraine.

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This has been the culmination of eight years of work since we were awarded the blocks in 2017, discovery in 2019, second discovery last year.