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Eni, Total Energies and the ministers of Egypt and Cyprus have signed a host government agreement (HGA) for the exploration of Cyprus’ Cronos Block 6 resources.
The agreement was signed in Cairo, Egypt, by Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi; Cyprus’ Minister of Energy, Commerce and Industry of George Papanastasiou; Eni CEO Claudio Descalzi; and TotalEnergies officials.
The signing was presided over by Egypt’s President Abdel Fattah El-Sisi and Cyprus President Nikos Christodoulides during the opening ceremony of the EGYPES energy event in Egypt.
This agreement marks a significant step towards creating a gas hub in the eastern Mediterranean by leveraging Egypt's current hydrocarbon infrastructure and establishing Cyprus as a key player in gas production and export.
The framework provides a detailed plan for the quick development of the Cronos gas discovery off the coast of Cyprus. The gas will be transported and processed at the established Zohr facilities before being liquefied at the Damietta LNG plant in Egypt for export to European markets.
The Damietta LNG plant is operated by a joint venture between Eni and Egas, an Egyptian state-owned natural gas holding company.
Eni CEO Claudio Descalzi said: “This agreement paves the way to bring Cyprus' gas to the market in a timely fashion, contributing to energy security and competitiveness of energy supply. This project leverages Egypt’s existing infrastructure, including export facilities, which are a key enabler for developments in the region.
“Egypt and Cyprus reaffirm their roles in the emerging energy hub of the eastern Mediterranean, which is set to play an increasing role in the global gas supply in the near future.”
Cronos gas was discovered in 2022 and evaluated in 2024, with estimated gas in place of more than three trillion cubic feet. Block 6, where the discovery was made, also holds potential resources for exploration and appraisal, including the Zeus discovery made in 2022.
Eni has been active in Cyprus since 2013, operating Block 6 with a 50% interest and also operating Block 8, while having participating interests in Blocks 7 and 11. TotalEnergies holds a 50% stake in Block 6.
Eni has had a presence in Egypt since 1954 and is now the top producer in the country with an equity production of around 280,000 barrels of oil equivalent per day in 2024.
Eni conducts its operations in Egypt through its wholly owned subsidiary IEOC.
"Eni, Total Energies sign deal to bring Cypriot gas to Europe via Egypt" was originally created and published by Offshore Technology, a GlobalData owned brand.