Exxon Eyes New Cyprus Gas Block as Eni-Total Near Deal With Nicosia

U.S. oil major ExxonMobil is in advanced talks to acquire a new offshore exploration block in Cyprus, while a separate dispute between the Cypriot government and the Eni-TotalEnergies consortium appears close to resolution, potentially clearing the way for the island’s first major gas production project, energy publication MEES reported.

According to MEES, ExxonMobil is negotiating to secure offshore Block 4 in Cyprus’ exclusive economic zone, expanding its existing footprint alongside Blocks 5 and 10, which it operates in partnership with QatarEnergy.

The report said Exxon recently declared commerciality at Block 10 after discoveries at the Glaucus and Pegasus fields, estimated to hold around 7 trillion cubic feet of natural gas.

Block 4 is the only available acreage adjacent to Exxon’s current concessions and can be negotiated directly outside a formal licensing round, MEES said.

The U.S.-Qatari partnership is also exploring nearby Egyptian waters, where drilling is expected later this year. Any additional discoveries there could shape development plans for the Cypriot gas fields, particularly as Exxon is seen favoring exports to Egyptian liquefaction facilities.

Meanwhile, Eni and TotalEnergies are nearing an agreement with the Cypriot government over terms linked to the development of Block 6, which contains the Cronos, Zeus and Calypso gas discoveries.

The Cronos field alone is estimated to contain around 3.1 trillion cubic feet of gas, while Zeus is believed to hold between 2 trillion and 3 trillion cubic feet, according to MEES.

Eni plans to transport gas from Cronos to Egypt for liquefaction using a combination of existing and new infrastructure. However, the consortium’s final investment decision was delayed earlier this year amid disagreements with Nicosia over contractual liabilities tied to gas shortfalls, cost overruns and Egyptian infrastructure risks.

MEES also revealed that while some concerns remain unresolved, both sides appear close to a compromise that could be announced within weeks, potentially paving the way for a final investment decision and first gas production by 2028.