Cyprus Oil & Gas 2025
Year in Review
2025 delivered the exploration and commercial milestones Cyprus had been waiting for. The Pegasus-1 discovery expanded Block 10 into an 8-9 Tcf resource, the Aphrodite development plan was approved and FEED began, and the Cronos export route to Egypt was locked in with a Host Government Agreement.
Updated July 2026 · Sources: MECI, operator announcements
Year Summary
2025 was the most consequential year for Cyprus's hydrocarbon sector in over a decade. After years of studies and negotiations, exploration drilling returned to the EEZ and two flagship developments moved onto concrete commercial footing:
- Pegasus Discovery: ExxonMobil's Pegasus-1 well in Block 10, announced on 7 July, found a ~350 m gas column. By September the government put Glaucus and Pegasus together at 8-9 Tcf — the centerpiece of Cyprus's resource base.
- Aphrodite Advanced: In February Cyprus approved the updated development and production plan (FPU, four initial wells, pipeline export to Egypt, ~$4 billion). FEED commenced on 22 December, the clearest signal yet that the project is heading toward FID.
- Cronos Export Route Set: The Host Government Agreement signed in Cairo on 17 February settled the long-debated Block 6 export question: Cronos gas will be processed at Egypt's Zohr facilities and liquefied at Damietta LNG for Europe.
- Portfolio Rationalization: Blocks 2, 3 and 9 were relinquished at the end of January as exploration terms expired, and KOGAS exited Cyprus. Elektra-1 in Block 5 found non-commercial gas but proved a working hydrocarbon system.
- New Leadership: Michael Damianos took over as Energy Minister in December, ahead of Cyprus assuming the EU Council presidency in January 2026.
Key Events by Month
January
February
April
July
September
December
Deep Dive: The Block 10 Campaign
The ExxonMobil / QatarEnergy consortium ran the year's only drilling campaign with the Valaris DS-9 drillship — one setback, one breakthrough:
Elektra-1 (Block 5)
Non-commercialCompleted in April 2025. Gas quantities were not commercial, but the well confirmed a working hydrocarbon system and good-quality reservoirs in Block 5.
Pegasus-1 (Block 10)
DiscoveryAnnounced 7 July 2025: a ~350 m gas column 190 km southwest of Cyprus in 1,921 m of water — Cyprus's first new discovery since Cronos and Zeus in 2022.
Why it mattered: Pegasus turned Block 10 from a single stranded discovery into a two-field development candidate. In September the government put Glaucus plus Pegasus at 8-9 Tcf, setting the stage for the commercial declaration that followed in mid-2026.
Deep Dive: Aphrodite's Year of Progress
After more than a decade in limbo, Aphrodite (Block 12 — Chevron, Shell, NewMed Energy) took two decisive steps in 2025:
Development Plan Approved (February)
DoneCyprus approved the updated development and production plan: a floating production unit in the Cyprus EEZ, four initial production wells, an export pipeline to Egypt, nominal capacity of ~800 MMcf/d, and an estimated cost of ~$4 billion.
FEED Launched (22 December)
DoneFront-end engineering and design commenced with a budget of roughly $105.7 million — the essential precursor to a final investment decision.
What came next: In April 2026, Egypt agreed to purchase 100% of Aphrodite's output. See the 2026 review for the full story.
What Didn't Happen in 2025
Against earlier expectations, several milestones slipped:
- • No Aphrodite FID — the year ended with FEED just underway; the investment decision moved into 2026.
- • No Glaucus appraisal well — the consortium prioritized Elektra-1 and Pegasus-1 exploration instead, relying on existing data plus Pegasus results to frame Block 10.
- • No new licensing round — Cyprus has still held only three rounds (2007, 2012, 2016) plus direct awards; a new round remained under study.
- • No Cronos or Block 6 FID — the HGA set the export route, but the investment decision was targeted for 2026.
2025 Bottom Line
Cyprus ended 2025 with six confirmed gas fields holding an official estimate of 17-18 Tcf, an approved and engineered path forward for Aphrodite, a signed export route for Cronos, and a materially bigger Block 10. The transition from "promising potential" to "committed development" was finally under way — and carried straight into 2026.
- Pegasus discovery lifted Block 10 to an estimated 8-9 Tcf (Glaucus + Pegasus)
- Aphrodite: development plan approved in February, FEED launched in December
- Cronos export route fixed: Zohr processing, Damietta LNG, Europe-bound