The offshore block is said to cover an area of 4,500km2 in water depths of up to 2,500m
QatarEnergy will have a 40% working interest in Block 5. (Credit: wasi1370 from Pixabay)
QatarEnergy, in partnership with US-based ExxonMobil, has secured a new offshore exploration block in the Republic of Cyprus.
A consortium, consisting of affiliates of both firms, has entered into an exploration and production sharing contract (EPSC) with Cyprus for the offshore Block 5 situated southwest of the island.
QatarEnergy stated that the Block 5 is the company’s second exploration block in the country. In 2017, the same consortium secured the Block 10.
Located adjacent to Block 10, the Block 5 is said to cover an area of 4,500km2 in water depths of up to 2,500m.
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 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.”
As per terms of the deal, QatarEnergy will have a 40% working interest in Block 5, while the remaining 60% stake will be held by ExxonMobil as an operator.
With an estimated in-place resources of 5 to 8 trillion cubic ft of gas, the Glaucus gas discovery was made by the consortium at Block 10 in February 2019.
To further refine the estimate, more evaluations are planned for the discovery over the coming months.
In October this year, QatarEnergy entered into an agreement with ExxonMobil Canada to farm into an Atlantic exploration licence.