<article><p class="lead">Cyprus has awarded ExxonMobil and state-owned Qatar Energy the rights to explore for oil and gas in the country's offshore block 5 concession southwest of the island. </p><p>Cyprus' energy ministry said the award was made after winning the approval of the Cypriot cabinet. ExxonMobil will take a 60pc stake in the block, and Qatar Energy the remaining 40pc. Block 5 lies adjacent to block 10, which ExxonMobil and Qatar Energy also hold the exploration rights for. </p><p>ExxonMobil told <i>Argus</i> last month that it is planning to restart drilling activities in block 10 in December <a href="https://direct.argusmedia.com/newsandanalysis/article/2275151">to confirm the extent of a large gas discovery</a> that the consortium made in early 2019. At the time, the companies <a href="https://direct.argusmedia.com/newsandanalysis/article/1857042">estimated that the Glafcos discovery</a> could hold as much as 5 trillion-8 trillion ft³ (142bn-226bn m³) of gas.</p><p>The companies were due to carry out appraisal drilling at the block in 2020 but ExxonMobil <a href="https://direct.argusmedia.com/newsandanalysis/article/2096475">decided to defer</a> this and other exploration activities as part of a company-wide plan to reduce capital expenditure amid the Covid-induced economic downturn. </p><p>Block 10 was the most contested asset on offer in Cyprus' third offshore licensing round because it borders Egypt's Shorouk concession, where Italy's Eni discovered the 850bn m³ Zohr gas field in 2015, the largest discovery to date in the eastern Mediterranean. The block is also located west of the 113bn-142bn m³ Aphrodite gas field in block 12 and is adjacent to block 6, where Eni made the 170bn m³ Calypso discovery in February 2018. </p><p class="bylines">By Nader Itayim</p></article>
