A consortium comprising affiliates of QatarEnergy and ExxonMobil signed an exploration and production sharing contract (“EPSC”) with the Republic of Cyprus for the offshore Block 5 located southwest of the island.
This is QatarEnergy’s second exploration block in the Republic of Cyprus, in addition to Block 10, which was awarded to the same consortium in 2017 and resulted in the “Glaucus” gas discovery announced in February 2019 with estimated in-place resources of 5 to 8 trillion cubic feet of gas. Further assessments are planned over the coming months to further refine this estimate.
Under the terms of the EPSC, QatarEnergy will hold a 40% working interest in Block 5 while ExxonMobil will be the operator and will hold a 60% working interest.
Commenting on the signing, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, said: “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.”
Block 5 covers an area of 4,500 km2 in water depths of up to 2,500 meters, and is adjacent to Block 10.