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ExxonMobil eyes 2033 production start at Cyprus gas fields

In-Cyprus · 2026-06-30

AI SUMMARY

• What happened: ExxonMobil, in collaboration with QatarEnergy, signed a declaration of commerciality for the Glaucus and Pegasus gas fields in Cyprus, marking the transition from exploration to development, with production expected to start in 2033. • Why it matters: This agreement is seen as a milestone for Cyprus's energy landscape, enhancing its role as a key energy partner in the Eastern Mediterranean and contributing to regional energy security. • What to watch next: ExxonMobil plans to make a final investment decision by 2029 and is evaluating development scenarios, while the Cypriot government prepares for a new licensing round to attract further investment in its hydrocarbon resources.

**ExxonMobil Eyes 2033 Production Start at Cyprus Gas Fields**

ExxonMobil, in collaboration with QatarEnergy, has taken a significant step in the development of natural gas resources in Cyprus by signing a declaration of commerciality for the Glaucus and Pegasus gas fields. This agreement marks the transition of these fields from the exploration phase to a developmental stage, which is seen as a pivotal moment for Cyprus's energy landscape.

Cyprus President Nikos Christodoulides hailed the signing as a “milestone of strategic importance” for the country’s Exclusive Economic Zone (EEZ). He emphasized that the agreement enhances Cyprus's role as a key energy partner in the Eastern Mediterranean, highlighting its potential to contribute to the region's energy security.

Energy Minister Michalis Damianos echoed these sentiments, noting that the declaration serves as a strong affirmation of Cyprus's energy program and its attractiveness as an investment destination within the hydrocarbons sector. The government views this development as a crucial step towards maximizing the potential of its EEZ.

ExxonMobil has outlined a timeline for the project, estimating that a final investment decision on the Glaucus and Pegasus fields will be made in 2029, with production anticipated to commence in 2033. Prior to reaching this final phase, the company plans to conduct additional drilling and engineering studies to assess the fields' viability and potential.

The consortium is currently evaluating various development scenarios for the gas fields, including the construction of a pipeline to Egypt or the establishment of liquefied natural gas (LNG) facilities. The decision on which route to pursue will depend on the volume of available reserves and the associated infrastructure costs.

ExxonMobil's Vice President remarked on the significance of this transition, stating that the exploration process in Cyprus, which began in 2017, is now evolving into the development stage. He described this progression as a “historic milestone” for the company and the region.

In addition to the developments at Glaucus and Pegasus, Minister Damianos indicated that work is ongoing on other energy projects, including the Aphrodite field. He also mentioned that negotiations with Israel regarding the Isai field are advancing, suggesting further potential for collaboration in the region's energy sector.

Looking ahead, the Cypriot government is preparing for a new licensing round in the coming years, which is expected to stimulate additional activity in the EEZ. This initiative aims to attract further investment and exploration in Cyprus's hydrocarbon resources, bolstering the country's energy strategy.

As ExxonMobil and QatarEnergy move forward with their plans, the implications for Cyprus's economy and energy security are significant, potentially positioning the nation as a vital player in the Eastern Mediterranean energy market.

Source: In-Cyprus
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