ExxonMobil to Start Offshore Gas Drilling in Cyprus January 2025
ExxonMobil will start drilling a new well offshore Cyprus in January 2025. This drilling is part of its efforts to explore natural gas. The initiative aims to diversify Europe’s gas supply, especially after disruptions caused by Russia since its invasion of Ukraine in 2022.
The eastern Mediterranean region has seen major natural gas discoveries recently. ExxonMobil secured exploration licenses in Cyprus in 2017 and found gas at the Glaucus well in 2019. The upcoming drilling includes two new wells, named Pegasus and Electra.
ExxonMobil holds exploration licenses for two offshore blocks in partnership with Qatar Energy. Other active companies in the region include Chevron, Eni, and TotalEnergies. Cyprus’s Energy Minister George Papanastasiou suggested that growing interest may lead to a new licensing round for offshore exploration.
John Ardill, ExxonMobil’s vice-president for global exploration, said the company has spent the last two years gathering detailed seismic data. They have identified several large prospects and are ready to drill.
How does ExxonMobil plan to address environmental concerns during its exploration activities in the eastern Mediterranean?
Interview with John Ardill, Vice-President of Global Exploration at ExxonMobil, on Upcoming Drilling in Cyprus
Date: October 2023
Interviewer: Welcome, John. Thank you for taking the time to speak with us today. ExxonMobil is set to commence drilling two new wells offshore Cyprus in January 2025. Could you elaborate on the significance of this initiative and how it fits into Europe’s energy landscape?
John Ardill: Thank you for having me. The upcoming drilling campaign is a pivotal step in our ongoing efforts to explore natural gas resources in the eastern Mediterranean. With the geopolitical shifts in Europe, especially post the Russian invasion of Ukraine, there’s an urgency to diversify the continent’s energy supply. Our work in Cyprus is part of a broader strategy to enhance energy security for European countries.
Interviewer: In 2019, ExxonMobil made a notable gas discovery at the Glaucus well. What are your expectations for the new wells, Pegasus and Electra?
John Ardill: Both wells are located in promising areas. The Electra well, situated in Block 5, has shown potential to be developed independently, but we also see significant opportunities in Pegasus, located near our Glaucus discovery in Block 10. Given the seismic data we’ve meticulously gathered over the last two years, we are optimistic about discovering additional gas reserves that could bolster supply options for Europe.
Interviewer: Can you tell us about the partnership with Qatar Energy and how this collaboration will impact your exploration efforts?
John Ardill: Partnering with Qatar Energy has strengthened our exploration capabilities in Cyprus. Their experience and commitment to natural gas exploration complement our activities, allowing us to leverage our combined expertise in the region. The collaboration also reflects a joint commitment to exploring sustainable energy solutions, essential for meeting Europe’s growing demand.
Interviewer: Besides ExxonMobil, companies like Chevron, Eni, and TotalEnergies are also active in the region. How does this competition influence your strategy?
John Ardill: Competition is a natural aspect of exploration. It drives innovation and efficiency. We welcome the presence of other major players in the eastern Mediterranean, as it indicates a vibrant interest in the region’s resources. It also opens up discussions about future collaborations and sharing best practices.
Interviewer: Cyprus’s Energy Minister suggested a potential new licensing round for offshore exploration. What does this mean for the future of natural gas exploration in the region?
John Ardill: Increased interest from various companies could indeed lead to new licensing rounds. This would not only attract further investment but also encourage more comprehensive exploration activities, which are essential for unlocking the full potential of the eastern Mediterranean’s natural gas reserves.
Interviewer: Looking ahead, what are the next steps for ExxonMobil post the drilling of the Pegasus and Electra wells?
John Ardill: After we complete our drilling operations, our immediate focus will be on evaluating the results and determining the feasibility of any potential development. Should we identify commercially viable reserves, our team will work on the necessary plans to bring those resources to market. We are committed to a thorough and responsible exploration process, ensuring that we follow best practices in environmental stewardship.
Interviewer: Lastly, how will the recent decision to exit another project and transfer your interests to Petronas affect your overall strategy?
John Ardill: Every decision we make reflects our commitment to focus on our core areas of strength and opportunity. Exiting the project allows us to allocate our resources more effectively towards regions where we see greater potential for growth, including Cyprus. It’s all part of a strategic reassessment to enhance our overall portfolio and maintain our leadership in global energy exploration.
Interviewer: Thank you again, John, for sharing these insights. We look forward to following ExxonMobil’s progress in Cyprus and the broader Mediterranean region.
The first well will be spudded in mid-January. Ardill expressed excitement about the drilling. Electra is in Block 5 and could be developed independently, while Pegasus is near the Glaucus discovery in Block 10 and close to the Eni/Total discovery, Cronos, in Block 6.
ExxonMobil also informed Staatsolie that it has exited from another project, transferring its 50% working interest to Petronas Suriname E&P. Now, Petronas holds 100% interest in that block.