A consortium comprising affiliates of QatarEnergy, a state-owned petroleum company and ExxonMobil, American multinational oil and gas corporation, signed an exploration and production sharing contract (EPSC) with Cyprus for the offshore Block 5 located southwest of the island in the Mediterranean Sea.
This is QatarEnergy’s 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 2019 with estimated in-place resources of 5 trillion to 8 trillion cubic feet of gas. Further assessments are planned over the coming months to further refine this estimate.
Saad Sherida Al-Kaabi Qatar Minister of State for Energy Affairs CEO – QatarEnergy
“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.”
Under the EPSC terms, QatarEnergy will hold a 40 percent working interest in Block 5, while ExxonMobil will be the operator and will hold a 60 percent working interest. Block 5 covers an area of 4,500 square kilometers (sq km) in water depths of up to 2,500 meter and is adjacent to Block 10.
Commenting on the signing, Cyprus’ Minister of Energy, Commerce, and Industry, Ms. Natasa Pilides said, “With both the Government and the consortium having identified the geological prospects and the potential production synergies arising from licensing Block 5, and after careful examination by the Hydrocarbons Advisory Committee of the technical and economic aspects of ExxonMobil’s and QatarEnergy’s application, we proceeded to negotiate in good faith the terms of the Exploration and Production Sharing Contract that the Council of Ministers approved and we have just signed.”
