QatarEnergy and ExxonMobil have entered into an exploration and production sharing contract (EPSC) for the offshore block five in Cyprus.
The contract was signed by a consortium of QatarEnergy and ExxonMobil affiliates, along with the Cypriot Government.
As agreed, QatarEnergy will own a 40% working interest in block five, located southwest of the island. ExxonMobil will operate the block with a 60% working interest.
Located adjacent to block ten, block five includes an area of approximately 4,500km2 in water depths of up to 2,500m.
In 2017, the same consortium won the EPSC for block ten. This resulted in the subsequent Glaucus gas discovery in February 2019.
The discovery is expected to yield an estimated 5-8 trillion cubic feet of gas with additional assessments planned to improve the estimate.
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QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “We are pleased with the signing of this EPSC, which expands our footprint in Cyprus. As confirmed by our discovery in block ten, 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.”
QatarEnergy has also signed deals with Shell to buy a 17% working interest in blocks three and four, located near Egypt in the Red Sea.
The deals are subject to government approval and will mark QatarEnergy’s entry into Egypt’s upstream sector.