Contracts worth up to 1.8 billion dollars were signed on Monday to develop the Cronos gas field off Cyprus, with production expected to begin in the first half of 2028.
The project brings Cyprus closer to its first gas production, Energy Minister Michael Damianos said. The contracts cover the main engineering, procurement, construction, installation and drilling work needed to develop the field, and the first sale of gas is expected between March and July 2028.
Eni, which operates Block 6, plans to drill two more wells there by the end of 2026, as it believes further quantities of gas may be found.
Cronos is estimated to hold more than three trillion cubic feet of gas, and production could reach up to 500 million cubic feet a day.
The gas will be sent to Egypt, where existing infrastructure, including facilities linked to the Zohr field, will be used. It will then be liquefied at the Damietta terminal, mainly for European markets.
President Nikos Christodoulides called the agreement “a strong vote of confidence” in Cyprus’s energy prospects and stressed its geopolitical and economic importance. He said exploiting the country’s natural resources strengthened the economy and opened the way for more state investment to benefit the public.
Damianos said the project would turn offshore discoveries into economic and strategic value and was expected to help Europe’s energy security by diversifying sources of supply.
Using Egyptian infrastructure limits costs, avoids unnecessary investment and speeds up the commercialisation of the gas, he added.
Guido Brusco, Eni’s chief operating officer for global natural resources, said the project would secure new gas supplies for Europe, strengthening security of supply at a time of geopolitical uncertainty.
The contractors are Baker Hughes, Dalmine, TechnipFMC, McDermott, Oceaneering, CMHI, Petrojet and Saipem.
The development of Cronos rests on cooperation between Cyprus, Egypt, Eni and TotalEnergies. The two companies have worked together in Block 6 since 2017. The government said it would remain actively involved in the project to keep to the timetable and meet the highest safety and environmental standards.
Eni has been active in Cyprus since 2013. It operates Block 6, in which it holds a 50 per cent stake, with the remaining 50 per cent held by TotalEnergies. Eni also operates Block 8 and has stakes in Blocks 7 and 11, which TotalEnergies operates.
