ExxonMobil, Qatar Energy take another block off Cyprus

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.

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.

ExxonMobil told Argus last month that it is planning to restart drilling activities in block 10 in December to confirm the extent of a large gas discovery that the consortium made in early 2019. At the time, the companies estimated that the Glafcos discovery could hold as much as 5 trillion-8 trillion ft³ (142bn-226bn m³) of gas.

The companies were due to carry out appraisal drilling at the block in 2020 but ExxonMobil decided to defer this and other exploration activities as part of a company-wide plan to reduce capital expenditure amid the Covid-induced economic downturn.

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.

By Nader Itayim