Two natural gas fields in Cyprus’ exclusive economic zone have been declared commercially viable by ExxonMobil and QatarEnergy, marking an important step in the development of the island’s offshore energy resources.

A Milestone For Cyprus Offshore Development

The Pegasus and Glaucus fields, both located in Block 10 of Cyprus’ exclusive economic zone (EEZ), were formally declared marketable on Tuesday during a signing ceremony at the Presidential Palace in Nicosia attended by executives from ExxonMobil, QatarEnergy and the Cypriot government.

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President Nikos Christodoulides described the announcement as a strong vote of confidence in Cyprus’ offshore potential.

“It is clear evidence and a vote of confidence in the prospects of Cyprus’ EEZ, but also in the prospects of the eastern Mediterranean to develop as a potential energy corridor for Europe. We look forward to even more positive announcements in the near future,” he said.

Christodoulides also said discussions on additional offshore blocks are continuing.

“We are discussing more blocks in detail,” he said, expressing hope that further announcements would follow. He added that the presence of ExxonMobil and QatarEnergy has been one of the most significant developments for Cyprus’ energy sector in recent years.

From Exploration To Development

For ExxonMobil, the declaration marks the next stage of a process that began when Block 10 was awarded in 2017. John Ardill, the company’s vice president for global exploration, said the project progressed through the Glaucus discovery in 2019 and the Pegasus discovery in 2025 before reaching the current milestone.

“So, with all of that under our belt, we now reach the second milestone,” Ardill said. “It is very important to recognise the success of the exploration and this milestone of declaring marketability. This really takes us from energy exploration to energy development, which is a fundamentally different step.”

Ardill noted that ExxonMobil is currently active in Cyprus, Egypt and Greece, with drilling programmes under way across all three countries. In Cyprus, the company plans additional drilling later this year as part of the Pegasus appraisal programme.

A Wider Offshore Strategy

Energy Minister George Papanastasiou said the government intends to expand exploration activity further, including work in Blocks 4 and 10A, as Cyprus continues assessing the commercial potential of its offshore resources.

“We are very proud of this milestone, as well as our very strong partnership with QatarEnergy,” he said. “We discovered the Glaucus deposit in 2019, and Pegasus last year, and we are carrying out exploratory drilling to understand the subsoil, which now allows us to move with sufficient confidence towards declaring marketability. This is an important milestone.”

He said further appraisal drilling is expected later this year, followed by the front-end engineering and design (FEED) phase. A final investment decision is targeted for 2029, while first natural gas production is planned for 2033.

“We are committed to 2033, but we hope to move faster,” he said.

Infrastructure Options Under Review

Asked how the gas could ultimately reach international markets, Ardill said ExxonMobil is evaluating several development options. These include an onshore processing facility in Cyprus connected by pipeline to Egypt, the use of Egypt’s existing liquefied natural gas infrastructure, and floating LNG facilities.

He noted that floating LNG solutions are generally more expensive, while an onshore liquefaction plant would require substantially larger reserves than those identified to date. Based on current assessments, a pipeline to Egypt appears to be the most practical option, supported by existing infrastructure and ongoing cooperation between the Cypriot and Egyptian governments.

That approach is consistent with broader regional energy plans. Cyprus and Egypt have already signed agreements covering Block 6 of Cyprus’ EEZ with the TotalEnergies-Eni consortium, under which Cypriot gas is expected to be transported through Eni’s infrastructure to the SEGAS LNG terminal in Damietta for export.

What Comes Next

While the declaration of marketability marks an important milestone, several technical steps remain before drilling can begin in Blocks 4 and 10A. ExxonMobil said it will first reprocess existing seismic data to improve its understanding of the subsurface before moving ahead with future drilling programmes.