Cyprus, ExxonMobil and QatarEnergy on Tuesday declared natural gas fields discovered off the Mediterranean island nation to be commercially viable, with a 2033 target for production to commence.
The declaration of commercial discovery, signed in Nicosia, moves the Glaucus and Pegasus gas discoveries from the exploration phase to project development, strengthening Cyprus's ambitions to become an eastern Mediterranean energy hub.
"This has been the culmination of eight years of work since we were awarded the blocks in 2017, discovery in 2019, second discovery last year," John Ardill, ExxonMobil's vice president for exploration and new ventures, said.
"This declaration of commerciality takes us from looking for energy to developing energy," Ardill said. "It is a very historic point."
Cypriot President Nikos Christodoulides described the agreement as "a milestone of strategic importance".
Ardill said the company expected to take a final investment decision in 2029, with production starting in 2033.
He added that ExxonMobil would resume drilling later this year as part of the Pegasus appraisal program, while expanding exploration into Blocks 4 and 10A of the Cypriot exclusive economic zone (EEZ).
"The concept of a European energy hub is realized when the molecules start flowing, and that's what we are here to initiate today," Ardill said.
Ardill said the leading development option is a subsea pipeline linking the Cypriot fields to existing liquefied natural gas infrastructure in Egypt, pointing to established bilateral agreements and infrastructure.
An onshore LNG terminal in Cyprus would require substantially larger gas reserves than those identified so far.
Tuesday's declaration follows years of appraisal drilling and technical studies confirming the fields are commercially exploitable.
Energy Minister Michael Damianos said Cyprus expected to launch a new offshore licensing round within the next two years.
The island nation has sought to position its offshore gas as a strategic source of energy security for Europe following Russia's invasion of Ukraine.
It has been 15 years since Nicosia's first commercial natural gas find, dubbed the Aphrodite field.
Cyprus has delineated its EEZ into 13 offshore exploration blocks licensed to international energy companies, including ExxonMobil, QatarEnergy, Eni, TotalEnergies and Chevron.
