ExxonMobil will drill a well offshore Cyprus in January in its pursuit of natural gas, a senior executive said on Thursday at an energy and geopolitics event in Nicosia.
“We’ve spent the last two years collecting very detailed, three-dimensional seismic data…We’ve identified several large prospects, and the next stage is to bring in a drilling rig and to test those,” said John Ardill, vice-president for global exploration at ExxonMobil.
“We’ll spud our first well in mid-January, so we are very excited about that,” he told the Economist conference in Nicosia.
The ExxonMobil exec identified the company’s next two prospects in Cyprus’ Exclusive Economic Zone (EEZ).
The first, dubbed Electra, is located in the Block 5 of the EEZ. Ardill described it as “a very large prospect” with the potential to be a standalone development though it would require appraisal drilling for any final conclusions.
The second, Pegasus, was close to already-discovered Glaucus in Block 10, and Kronos, an ENI/Total discovery lying just north in Block 6.
“There is huge potential for gas exploration,” Ardill stated.
He said a drillship was en route from Western Africa to the eastern Mediterranean. It’s scheduled to arrive off the coast of Egypt in mid-December, where it will operate for about a month. Next it will head out to waters off Cyprus.
“So when we meet again next year”, said Ardill, “I’ll be here to speak on the results of the drills and, I hope, the natural gas discoveries, which will next lead to a discussion on how we can develop this natural gas.”
Also addressing the Economist conference was Energy Minister George Papanastasiou. In his remarks, the minister said he was confident that Cyprus can become the European Union’s “energy arm” in the region.
If everything lines up, said Papanastasiou, the island might transform into an energy hub for natural gas and even hydrogen.
Asked about the Aphrodite reservoir in Block 12, the minister said the government has had “very productive” talks with the concession’s operator.
The operator is expected to deliver a final development plan for the gas field by January 2025.
Also attending the event was Matthew Bryza, former US Deputy Assistant Secretary of State for European and Eurasian Affairs.
Bryza, who also previously served as US ambassador to Azerbaijan, noted that current gas discoveries offshore Cyprus are not yet sufficient for exports.
On the Great Sea Interconnector – the proposed subsea electricity cable linking Israel, Cyprus and Greece – Bryza called it “an extremely challenging project” financially that will require heavy subsidisation.
Bryza is currently a board member of Overgas, Bulgaria’s largest private natural gas distribution company.
