Frequently Asked Questions

The Cyprus Exclusive Economic Zone (EEZ) is a maritime area extending 200 nautical miles from the Cypriot coastline where Cyprus has sovereign rights over natural resources. The EEZ covers approximately 51,000 km² of the Eastern Mediterranean Sea and is divided into 13 exploration blocks for hydrocarbon licensing.

The Cyprus EEZ is divided into 13 offshore exploration blocks. As of 2024, 10 blocks are licensed to international oil companies, while 3 blocks remain open for future licensing rounds. Block 12 was the first to be licensed in 2008.

The Ministry of Energy, Commerce and Industry (MECI) is the primary regulatory authority for hydrocarbons in Cyprus. The Cyprus Hydrocarbons Company (CHC) manages state interests, while the Cyprus Energy Regulatory Authority (CERA) oversees market operations. Exploration licenses are awarded through competitive bidding rounds.

Modern offshore exploration in Cyprus began with the first licensing round in 2007. Block 12 was licensed to Noble Energy in 2008, leading to the first major discovery (Aphrodite) in December 2011. Four licensing rounds have been conducted: 2007, 2012, 2016, and 2019.

Discovered gas reserves in Cyprus EEZ are estimated at 14-21 trillion cubic feet (Tcf). The largest field is Glaucus (5-8 Tcf), followed by Aphrodite (3.5-4.5 Tcf). Additional undiscovered resources are believed to exist in unexplored blocks, with total potential estimated at over 60 Tcf.

Water depths across Cyprus EEZ range from 1,200 meters to over 2,800 meters, classifying most operations as deepwater or ultra-deepwater drilling. Block 6 discoveries are in depths of 1,850-2,287 meters, while Glaucus (Block 10) is at approximately 2,063 meters depth.

Six significant gas discoveries have been made in Cyprus EEZ: Aphrodite (2011, 3.5-4.5 Tcf), Calypso (2018, 2-3 Tcf), Glaucus (2019, 5-8 Tcf), Cronos (2022, 2.5 Tcf), Zeus (2022, 1-2 Tcf), and Onesiphoros West (2017, 0.5-1 Tcf). All contain dry natural gas with low contaminants.

Glaucus is the largest gas discovery in Cyprus EEZ, with estimated reserves of 5-8 trillion cubic feet (Tcf). Discovered by ExxonMobil in Block 10 in February 2019, Glaucus ranks among the largest deepwater gas discoveries globally in recent years.

Aphrodite, discovered in 2011, is the most advanced development project in Cyprus. Operated by Chevron with Shell and NewMed Energy as partners, the field is in development planning phase. The preferred export option is via pipeline to Egyptian LNG facilities, with first gas targeted for 2027-2028.

Block 6, operated by ENI with TotalEnergies as partner, has yielded three discoveries: Calypso (2018), Cronos (2022), and Zeus (2022). Combined reserves are estimated at 5.5-8 Tcf. The consortium is evaluating integrated development options including a hub connecting all three fields.

Cyprus is expected to begin gas production between 2027-2030. Aphrodite is the most likely first development, with target first gas in 2027-2028 pending final investment decision. Block 6 cluster development (Cronos/Calypso/Zeus) is targeting 2028-2030, depending on export route decisions.

Gas discovered in Cyprus EEZ is high-quality dry gas (predominantly methane) with low CO2 and H2S content, requiring minimal processing before export. The gas composition is comparable to other Eastern Mediterranean discoveries in Israeli and Egyptian waters.

Four major international oil companies operate in Cyprus EEZ: ENI (Italy) operates 5 blocks including Block 6 with major discoveries; ExxonMobil (USA) operates Blocks 5 and 10 where Glaucus was found; TotalEnergies (France) operates Blocks 7 and 11; Chevron (USA) operates Block 12 containing Aphrodite.

ENI is the most active operator in Cyprus with interests in 5 blocks (2, 3, 6, 8, 9). The Italian energy company made three discoveries in Block 6: Calypso (2018), Cronos (2022), and Zeus (2022). ENI partners with KOGAS and TotalEnergies across different blocks.

ExxonMobil discovered Glaucus in Block 10 in February 2019, the largest gas find in Cyprus EEZ with 5-8 Tcf of estimated reserves. ExxonMobil operates Blocks 5 and 10 in partnership with Qatar Energy (formerly Qatar Petroleum). Appraisal drilling is planned to better define the resource.

Chevron operates Block 12 containing the Aphrodite field. Chevron acquired the operatorship from Noble Energy in 2020. Partners include Shell (35%) and NewMed Energy (30%). The consortium is working toward final investment decision for Aphrodite development with export to Egypt.

Cyprus Hydrocarbons Company (CHC) is the state entity managing Cyprus government interests in hydrocarbons. CHC monitors licensed activities, participates in development decisions, and ensures national interests are protected. CHC is involved in infrastructure planning for domestic gas use.

Key partnerships in Cyprus: KOGAS (Korea) partners with ENI in Blocks 2, 3, 8, 9; Qatar Energy partners with ExxonMobil in Blocks 5, 10; TotalEnergies partners with ENI in Blocks 6, 7, 11; Shell and NewMed Energy partner with Chevron in Block 12.

Three main export routes are under consideration: Cyprus-Egypt pipeline to Egyptian LNG plants (most advanced for Aphrodite); Vasilikos floating LNG terminal in Cyprus; EastMed pipeline directly to Europe via Greece. Each option has different economics, timelines, and volume requirements.

EastMed is a proposed 1,900 km subsea pipeline connecting Eastern Mediterranean gas (Cyprus, Israel) to Greece and Italy. Estimated cost is $6 billion with capacity of 10-20 Bcm/year. While technically feasible, the project faces economic challenges compared to LNG alternatives.

The Cyprus-Egypt pipeline is a proposed 300 km subsea pipeline to transport Aphrodite gas to Egyptian LNG facilities at Idku and Damietta. Cost is estimated at $1 billion with 8 Bcm/year capacity. This is the preferred export route for Aphrodite field development.

Vasilikos is the proposed location for a floating LNG (FLNG) terminal to process and export Cypriot gas. The facility would have 5-7 million tonnes per year capacity. It is being evaluated as an alternative or complement to pipeline exports, particularly for Block 6 gas.

Cyprus plans to convert the 868 MW Vasilikos Power Station from oil to natural gas, reducing electricity costs and emissions. Domestic consumption is estimated at 1-2 Bcm/year. The majority of production will be exported, with domestic use as a priority but small portion of total output.

The East Mediterranean Gas Forum (EMGF) is an intergovernmental organization including Cyprus, Egypt, Greece, Israel, Italy, Jordan, and Palestine. Headquartered in Cairo, EMGF promotes regional gas cooperation, infrastructure development, and export coordination to European markets.

International oil companies have invested approximately $700 million in exploration activities in Cyprus since 2008. This includes seismic surveys and 12+ exploration and appraisal wells. Development phase investments (pending FID) are expected to exceed $10 billion across multiple projects.

Aphrodite development is estimated at $3-4 billion including subsea infrastructure and Egypt pipeline. Block 6 cluster development could cost $5-6 billion with FLNG option. Total infrastructure investment across all projects could reach $15-20 billion over the next decade.

Cyprus uses Production Sharing Contracts (PSC) with 10% royalty on production. After cost recovery (typically 30-40% of production), remaining profit oil is split between the state and contractors based on R-factor triggers. The regime is considered competitive with regional peers.

Aphrodite FID is expected in 2025-2026 pending agreement on Egypt export terms. Block 6 (ENI) is evaluating development concepts with FID possible in 2026-2027. Glaucus (ExxonMobil) requires further appraisal before FID, potentially in 2027-2028.

Cyprus projects generally require gas prices of $4-6 per MMBtu to achieve commercial returns. Egypt pipeline option for Aphrodite has lower breakeven than standalone FLNG. Block 6 cluster development benefits from shared infrastructure reducing unit costs.

Turkey disputes Cyprus EEZ boundaries and has interfered with exploration activities. This has occasionally delayed drilling campaigns but has not stopped development progress. International operators continue operations with Cyprus government and EU support.