ExxonMobil and QatarEnergy expand footprint in Cyprus with new block entry

A consortium comprising affiliates of ExxonMobil and QatarEnergy has signed an exploration and production sharing contract (EPSC) with Cyprus for the offshore Block 5 located southwest of the island.

Announcing the signing on Friday, QatarEnergy pointed out that this is its second exploration block in Cyprus, in addition to Block 10, which was awarded to the same consortium in 2017 and resulted in the Glaucus gas discovery announced in February 2019 with estimated in-place resources of 5 to 8 trillion cubic feet of gas. Further assessments are planned over the coming months to further refine this estimate, the Qatari company said.

Under the terms of the EPSC, QatarEnergy will hold a 40 per cent working interest in Block 5 while ExxonMobil will be the operator and will hold a 60 per cent working interest. Natasa Pilides, Cyprus Minister of Energy, Commerce, and Industry, signed the EPSC with ExxonMobil and QatarEnergy.

Block 5 covers an area of 4,500 km2 in water depths of up to 2,500 meters, and is adjacent to Block 10.

Commenting on the signing, Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, said: “We are pleased with the signing of this EPSC, which expands our footprint in Cyprus. As confirmed by our discovery in Block 10, this region is promising and has very good potential for hydrocarbon exploration.

“We look forward to continuing to collaborate with the government of Cyprus and with our long-term strategic partner ExxonMobil to contribute to the exploration of natural resources in the Republic of Cyprus, and bring a significant addition to our growing international portfolio.”

QatarEnergy has recently changed its name from Qatar Petroleum, reflecting its new strategy focused on the energy transition.