NICOSIA, Cyprus (AP) — ExxonMobil could partner up with a consortium composed of Eni of Italy and Total of France to jointly develop gas deposits they’ve discovered close to each other off Cyprus' southern coast, the Cypriot energy minister said Friday.
Minister George Papanastasiou said ExxonMobil is in talks with the Eni-Total consortium on working together to bring their discoveries to market.
He said that potential collaboration could get a significant boost if an exploratory well that ExxonMobil plans to drill early next year strikes more of the hydrocarbon.
Cyprus officials have repeatedly said that offshore gas deposits could bolster Europe’s efforts to secure alternative energy sources following Russia’s war in Ukraine.
Papanastasiou made the remarks after ExxonMobil’s Vice President for Global Exploration John Ardill held talks with Cypriot President Nikos Christodoulides in the capital, Nicosia.
ExxonMobil’s new well, dubbed Pegasus, will be drilled near the existing Glaucus deposit which is estimated to contain 5 to 8 trillion cubic feet of gas inside an area for which the company and its partner Qatar Petroleum hold exploration licenses.
The area, known as Block 10, lies directly south of Block 6 where the Eni-Total consortium have discovered the Cronos deposit estimated to hold 2.5 trillion cubic feet of gas.
Papanastasiou said some type of infrastructure could link the Glaucus deposit with nearby Pegasus if it’s found to contain adequate gas reserves.
Separately, ExxonMobil will drill another new exploratory well dubbed Electra in January next year in Block 5 which is situated north of Block 10 and to the west of Block 6.
Ardill said ExxonMobil will mull over different development options once an assessment of the newly drilled wells is completed by the middle of next year.
Papanastasiou said those options could include turning the gas into liquid form through a seaborne installation situated atop the wells or transferring the gas to onshore facility on Cyprus for processing to meet domestic energy needs or export abroad.
ExxonMobil and Qatar Petroleum hold exploration licenses for two blocks, the Eni-Total consortium for seven blocks and a Chevron-Shell partnership for one.
Christodoulides said last week that Cypriot authorities are in early talks with several unidentified energy companies from Persian Gulf states regarding exploration licenses inside Cyprus' offshore exclusive economic zone.
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
See The Five Stocks Here
Which stocks are major institutional investors including hedge funds and endowments buying in today's market? Click the link below and we'll send you MarketBeat's list of thirteen stocks that institutional investors are buying up as quickly as they can.
Get This Free Report
Like this article? Share it with a colleague.
Link copied to clipboard.
