Important week ahead for 'Elektra' drilling, Energy Minister says

The weekaheadis expected to be crucial for the drilling operation at the 'Elektra' target in Block 5 of Cyprus' Exclusive Economic Zone (EEZ). Results from the drilling, conducted by the ExxonMobil-Qatar Energy consortium, are anticipated to be announced by the end of March.

Speaking to the Cyprus News Agency (CNA), Energy Minister George Papanastasiou advised caution, stating, "small expectations. Νext week is important." While there are positive indications, he stressed that final conclusions should be drawn only after the completion of the process.

According to CNA sources, efforts will be made early next week to insert the drill into the reservoir to determine whether there is a commercially viable gas deposit. On-site indications appear promising.

Meetings with ExxonMobil and Chevron in the US in early April

Minister Papanastasiou also confirmed that he will be in the United States from 2 to 8 April, accompanying President Nikos Christodoulides at an investment conference in New York. The visit aims to attract investors in the energy, shipping, and innovation sectors.

As CNA has learnt, following the conference Cyprus’ delegations will head to Houston, Texas, to hold meetings with ExxonMobil and Chevron. Beyond formal discussions, these meetings are particularly significant following the recent signing of trilateral agreements between Cyprus, Egypt, and the energy companies that pave the way for the commercialisation of Cyprus' offshore gas reserves.

Under the agreements with Egypt, there are expectations that Cyprus' first gas is will be transported to Egyptian facilities at Zohr and Damietta by 2027. Due to its proximity to these infrastructures, gas from Block 6 is estimated to be developed first, facilitating the connection of additional reserves in the area through the same framework and technical solution.

Oxford Institute of Energy Studies: Cyprus-Egypt agreement crucial for market stability

In a March analysis entitled "Cyprus upstream to help stabilise Egypt gas balances" the Oxford Institute of Energy of Energy Studies highlighted the importance of the recent agreements signed in Egypt.

"You wait for a bus - in this case for several years - and then suddenly two come along at once: in this case announcements on the development of two of Cyprus’ offshore gas fields, Aphrodite and Cronos," the report says.

The report describes the Cyprus-Egypt agreement as particularly significant for the energy market.

As noted, the volatility of Egypt’s LNG trade has been a major and surprising dynamic in global LNG balances: from exporting around 10 Bcm in 2021-22, it will import probably over 6 Bcm in 2025. A swing of 16 plus Bcm in such a short timeframe is having an outsized impact on global LNG balances,” it is added.

“The question now, after so many false dawns, is when exactly (and now not if) Cyprus will become a gas producer and bolster the East Med gas production profile” says the Institute.

While negotiations over the Aphrodite and Cronos fields are still ongoing, a definitive statement of intent was made in February 2025, confirming that the projects will proceed, and the gas produced will be directed to Egypt.

With 8 Bcma coming from Aphrodite and assuming 6 Bcma from Cronos, that 14 Bcma would approximately fill eighty per cent of the two Egypt’s LNG plants’ capacity, the analysis concludes.

(Source: CNA)