Key Points
- 01ExxonMobil, QatarEnergy and Cyprus declared Pegasus and Glaucus gas deposits marketable on June 30, 2026
- 02The discoveries in Block 10 of Cyprus’ EEZ are jointly held by ExxonMobil and QatarEnergy
- 03ExxonMobil plans additional appraisal drilling at the Pegasus field at the end of 2026
- 04Production from the Cypriot gas discoveries could begin by 2033, with exports likely via Egypt
Marketability deal marks new phase for Cyprus gas
On June 30, 2026, ExxonMobil and QatarEnergy signed a joint declaration with the Cypriot government at the presidential palace in Nicosia, formally declaring the Pegasus and Glaucus undersea gas deposits in Cyprus’ exclusive economic zone marketable. The agreement covers discoveries located in Block 10 and represents a coordinated step by the companies and the state to move the resources toward commercial development.
The Pegasus and Glaucus fields are held jointly by ExxonMobil and QatarEnergy, positioning the partners at the center of Cyprus’ offshore gas ambitions. Declaring the deposits marketable establishes a shared understanding that the fields have potential for commercial exploitation and frames the next stage of technical and commercial work needed to bring them to production.
From exploration to development planning
ExxonMobil’s vice president for global exploration, John Ardill, described the June declaration as the culmination of eight years of work. His comments underline the long exploration timeline leading up to the decision and signal a transition toward more detailed appraisal and project design activities.
As part of the forward work plan, additional appraisal drilling at the Pegasus field is scheduled for the end of 2026. This upcoming campaign is intended to refine understanding of the reservoir and will help inform future investment and development decisions for the Block 10 discoveries.
Projected timeline to first gas
ExxonMobil and QatarEnergy indicated that production from the Pegasus and Glaucus discoveries could begin by 2033. This projected start date reflects the remaining stages of technical appraisal, engineering design, permitting and project execution required after the marketability declaration.
The 2033 production goal places the Cypriot offshore gas project on a multi‑year development trajectory. It highlights that, while exploration efforts have delivered discoveries considered marketable, substantial work remains before gas from Block 10 can reach end markets.
Export routes and LNG options under review
For potential export solutions, ExxonMobil has identified a pipeline connection to existing liquefaction infrastructure in Egypt as the most likely option for the Cypriot gas. Linking into established Egyptian LNG facilities would provide access to global markets through already operating export terminals.
Alongside the Egyptian route, other configurations are being considered, including the possibility of an onshore liquefied natural gas plant in Cyprus and floating LNG solutions. These alternatives remain under review as part of broader planning for how best to commercialize the Pegasus and Glaucus resources once development progresses.
Key Takeaways
- 01The June 30 declaration formally shifts Cyprus’ Pegasus and Glaucus finds from pure exploration toward structured development planning.
- 02A multi‑year timeline is envisioned, with additional appraisal in 2026 and potential first production around 2033.
- 03Export strategy is a central issue, with a likely focus on leveraging Egyptian LNG capacity while keeping Cypriot and floating LNG options open.