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. Within it, Cyprus has delineated 13 hydrocarbon exploration blocks covering approximately 51,000 km² of the Eastern Mediterranean Sea; the EEZ boundaries with Egypt (2003), Israel (2010) and Lebanon (2025) are set by bilateral median-line agreements.

The Cyprus EEZ is divided into 13 offshore exploration blocks. As of July 2026, seven blocks are licensed to international oil companies (Blocks 5, 6, 7, 8, 10, 11 and 12). Blocks 2, 3 and 9 were relinquished in early 2025 when their exploration terms lapsed, and Blocks 1, 4 and 13 remain open — with ExxonMobil and QatarEnergy having signalled interest in Block 4. 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. Cyprus has held three competitive licensing rounds — 2007, 2012 and 2016 — and awarded two further blocks by direct application (Block 7 in 2019 and Block 5 in 2021). The government has signalled a new round could follow within a couple of years.

The Republic of Cyprus estimates its six gas fields hold roughly 17-18 trillion cubic feet (Tcf) combined (post-Pegasus government figure, September 2025). The largest is the Block 10 pair Glaucus and Pegasus, together about 7-9 Tcf and declared a commercial discovery in June 2026, followed by Aphrodite (~2.9-3.7 Tcf 2C) and Cronos (3.1 Tcf gas in place). Additional undiscovered resources are believed to exist in unexplored blocks.

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.

Cyprus counts six commercial-scale gas fields: Aphrodite (2011, ~2.9-3.7 Tcf 2C), Calypso (2018, ~1 Tcf), Glaucus (2019, 3.7 Tcf GIIP), Cronos (2022, 3.1 Tcf GIIP), Zeus (2022, 2-3 Tcf GIIP) and Pegasus (2025) — with Glaucus and Pegasus together holding an estimated 7-9 Tcf, declared a commercial discovery in June 2026. Combined, the six fields are estimated at roughly 17-18 Tcf. All contain dry natural gas with low contaminants.

The largest resource in the Cyprus EEZ is in Block 10, where the Glaucus (2019) and Pegasus (2025) fields together hold an estimated 7-9 trillion cubic feet (Tcf). Operated by ExxonMobil with QatarEnergy, the two fields were declared a commercial discovery on 30 June 2026 and are moving into development.

Aphrodite (Block 12, ~2.9-3.7 Tcf contingent resources per the February 2026 NSAI report), discovered in 2011, is one of Cyprus's most advanced projects. It is operated by Chevron with Shell and NewMed Energy. Cyprus approved its development and production plan in February 2025, FEED began in December 2025, and in April 2026 Egypt initialed a 15-year term sheet for the field's entire output via a new pipeline to Port Said. A final investment decision is targeted for late 2026-2027, with first gas around 2030-31.

Block 6, operated by Eni with TotalEnergies, has yielded three discoveries: Calypso (2018), Cronos (2022) and Zeus (2022). Cronos gas will be piped ~90 km to Egypt's Zohr facilities and liquefied at Damietta LNG for European export at ~5 bcm/yr: the Host Government Agreement was signed in February 2025, commercial deals in October 2025, and the development plan was approved in May 2026 with FID imminent and first gas targeted for 2028. Calypso and Zeus are candidates for a possible second development phase.

Cyprus has no production yet. The earliest first gas is expected in 2028 from Cronos (Block 6) and around 2030-31 from Aphrodite (Block 12), both exporting to Egypt. The larger Block 10 development (Glaucus and Pegasus) is later, with FID anticipated around 2029 and production near 2033.

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 international oil companies operate blocks in the Cyprus EEZ: Eni (Italy) operates Blocks 6 and 8; ExxonMobil (USA) operates Blocks 5 and 10, where Glaucus and Pegasus were found; TotalEnergies (France) operates Blocks 7 and 11; and Chevron (USA) operates Block 12, containing Aphrodite. QatarEnergy, Shell and NewMed Energy participate as partners.

Eni holds four Cyprus blocks — it operates Blocks 6 and 8 and is a partner in Blocks 7 and 11. The Italian energy company made three discoveries in Block 6: Calypso (2018), Cronos (2022) and Zeus (2022), and is advancing Cronos toward development via Egypt. Eni relinquished Blocks 2, 3 and 9 in early 2025, and its former partner KOGAS left Cyprus.

ExxonMobil discovered Glaucus in Block 10 in February 2019 and followed it with the Pegasus discovery in July 2025; together the two fields hold an estimated 7-9 Tcf. ExxonMobil operates Blocks 5 and 10 with QatarEnergy. In Block 5 the 2025 Elektra-1 well found only non-commercial gas, but on 30 June 2026 the Block 10 fields were declared a commercial discovery, moving into development with FID anticipated around 2029.

Chevron operates Block 12 (35%) containing the Aphrodite field, having acquired the operatorship via its 2020 takeover of Noble Energy. Partners are Shell (35%) and NewMed Energy (30%). Cyprus approved the development plan in February 2025, FEED began in December 2025, and Egypt initialed a 15-year term sheet for the field's output in April 2026 — with a final investment decision targeted for late 2026-2027.

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 as of 2026: QatarEnergy partners with ExxonMobil in Blocks 5 and 10; Eni and TotalEnergies partner across Blocks 6, 7, 8 and 11 (each operating two); and Shell and NewMed Energy partner with Chevron in Block 12. KOGAS previously partnered with Eni in Blocks 2, 3 and 9 but left Cyprus when those licences lapsed in early 2025.

Cyprus's export strategy has consolidated around Egypt: Aphrodite gas will flow by a new subsea pipeline to Port Said, and Cronos (Block 6) will be processed at Egypt's Zohr facilities and liquefied at Damietta LNG for Europe. A direct EastMed pipeline to Greece remains proposed but dormant, and a floating LNG option in Cyprus has not advanced. (A separate Vasilikos terminal is being built to import gas for domestic power, not to export.)

EastMed is a proposed 1,900 km subsea pipeline connecting Eastern Mediterranean gas (Cyprus, Israel) to Greece and Italy, with an estimated cost of about $6 billion. As of 2026 the project is effectively dormant — no final investment decision has been taken and it remains stalled by cost and financing challenges, though it has not been formally cancelled. LNG-via-Egypt routes have taken precedence.

It is a new subsea pipeline that will carry Aphrodite (Block 12) gas to Port Said in Egypt, feeding Egypt's grid and LNG plants with potential re-export to Europe. In April 2026 Egypt initialed a 15-year term sheet for 100% of Aphrodite's output; press reports put the pipeline cost at around $2 billion with capacity up to 700 MMcf/d. FID is targeted for late 2026-2027, construction from 2027 and first gas around 2030-31.

The Vasilikos terminal (the CyprusGas2EU project) is an LNG import facility built to supply imported gas to Cyprus's power sector via the FSRU Prometheas — not an export plant. The lead contractor's contract was terminated in 2024 and the project has been reassessed; cost estimates have risen to around €1-1.2 billion and realistic first gas has slipped to about 2030. The Prometheas vessel was delivered in December 2024 but has yet to be deployed.

Cyprus plans to switch the 868 MW Vasilikos Power Station from oil to natural gas, cutting electricity costs and emissions, with initial supply coming from the Vasilikos LNG import terminal once it is completed (currently targeted around 2030). Domestic consumption is estimated at 1-2 Bcm/year; the large majority of offshore production is earmarked for export to Egypt.

The East Mediterranean Gas Forum (EMGF) is an intergovernmental organization with eight members: Cyprus, Egypt, France, Greece, Israel, Italy, Jordan and Palestine. Headquartered in Cairo, EMGF promotes regional gas cooperation, infrastructure development and export coordination to European markets, and remains active with regular ministerial meetings.

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 around $4 billion for the floating production unit and wells, plus roughly $2 billion for the pipeline to Egypt. The Block 6 (Cronos) development uses a tie-back to existing Egyptian infrastructure, lowering upfront cost. Total infrastructure investment across all Cyprus projects could reach $15-20 billion over the coming 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 (Chevron) FID is targeted for 2026, following the April 2026 Egypt offtake deal. Cronos (Eni, Block 6) FID is also expected in 2026. The larger Block 10 development (Glaucus and Pegasus, ExxonMobil) was declared a commercial discovery in June 2026, with FID anticipated around 2029 and production near 2033.

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 rejects the island's licensing. Tensions persisted through 2025-2026 — including Turkey's contested maritime deal with Libya and objections to the Great Sea Interconnector — but no physical disruption of drilling inside the Cyprus EEZ was reported in this period, and the 2025-2026 exploration and development milestones proceeded on schedule with Cyprus government and EU support. Leaders of the two Cypriot communities resumed contacts in 2026.