Today marks a milestone for Cyprus’s energy sector, as contracts were signed for the construction projects related to the development of the Kronos field.
Work will begin immediately, with the goal of starting production in early 2028, with reports indicating that the first exports of Cypriot natural gas are expected between March and July 2028.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
The contracts signed today cover work on subsea production systems, a floating control unit, offshore pipelines, subsea cables, an onshore pipeline to transport natural gas to Damietta, drilling operations using the SAIPEM 10000 drilling rig, and natural gas production pipelines.
“The signing of contracts totaling up to $1.8 billion for the development of the “Kronos” field, and by extension the first commercial exploitation of Cypriot natural gas, constitutes a strong vote of confidence in our country’s energy prospects, with particular geopolitical and economic significance.”
Nikos Christodoulides
The signatures marking the transition from planning to implementation were affixed at noon at the Presidential Palace during a ceremony attended by the contractors undertaking the construction projects, officials from ENI and TOTAL, as well as the ambassadors of Egypt and Italy.
“For Cyprus, however, the significance of the Kronos field far exceeds the size of its estimated reserves. As our country’s first hydrocarbon development project, it marks the beginning of a new chapter in our energy journey and provides a substantial boost to our efforts to transform offshore discoveries into tangible economic and strategic value.”
Michalis Damianos – Minister of Energy
According to the plans, the natural gas will be transported from the Kronos field to the facilities at the Egyptian Zor field, where the fuel will be processed, and then transported to the onshore facilities in Damietta, where it will be liquefied, loaded onto tankers, and exported to European markets.
To be continued
According to Alpha, today is just the beginning.
Alpha’s sources report that by the end of the year, the consortium plans to drill two more wells, east and west of the Kronos field.
The same sources note that if estimates of more than 2 trillion cubic feet of natural gas are confirmed, commercialization will be straightforward due to the proximity of the infrastructure to be built for Saturn.
A telling example is the statement made during the ceremony by ENI’s General Manager of Operations.
“This is a significant moment, as Kronos is a strategic project: it is proof of our ability to carry out our plans. It combines success in exploration, rapid development, regional integration, and synergy in leveraging existing infrastructure. It is our first development project in Cyprus and signals our commitment to becoming a long-term partner in the country’s energy future. “This is the beginning of a journey.”
Guido Brusco – ENI General Manager of Operations
At the same time, the Italian company ENI, in collaboration with the American company EXXONMOBIL, is in discussions to form a joint venture for the rights to Block 4, which is currently unallocated.
This block borders Block 5, which, by law, entitles EXXONMOBIL to receive rights through direct assignment.
Discussions between the companies regarding a partnership are at an advanced stage.
See the report by Neoklis Neokleous:
Regarding the financial aspect of the project, Financial Analyst George Georgiou explained on Alpha TV’s main news broadcast that the question of what profits the Republic of Cyprus will derive from exploiting the deposit cannot be answered at this time, as the consortium’s expenses must first be recouped.
Revenues, as the financial analyst estimates, will likely be limited, explaining that what we “bought” is the prospect, since if this particular field were lost, the Aphrodite, Glaukos, or Zeus fields might be shut down.
At the same time, it remains to be seen how the market will move, since while conditions are favorable at present, the outlook in 3, 4, or 5 years is uncertain.
