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ExxonMobil Glaucus discovery could be ‘one of the biggest finds of the year’

ExxonMobil’s natural gas discovery offshore Cyprus in the Eastern Mediterranean at the Glaucus-1 well, could be ‘one of the biggest finds of the year’, according to Wood Mackenzie.

The discovery, located in block 10, could represent an in-place natural gas resource of approximately 5–8tn cf (142–227bn cm), says ExxonMobil.

Glaucus-1 was the second of a two-well drilling programme in block 10. The first well, Delphyne-1, did not encounter commercial quantities of hydrocarbons. ExxonMobil holds a 60% stake in the block, and is operator; Qatar Petroleum holds the remaining 40% interest.

Commenting on the news, Robert Morris, Senior Research Analyst, Europe Upstream, Wood Mackenzie, says: ‘Glaucus is a giant. It will be one of the biggest discoveries of the year. Based on ExxonMobil’s announcement and field analogues, we think the field could hold 4.55tn cf of recoverable resource, or around 800mn boe. The discovery maintains the East Mediterranean’s position as one of the world’s premier exploration hotspots.’

He continues: ‘The discovery is more evidence of the huge success the majors have enjoyed in exploration in the years since the industry downturn. ExxonMobil has been at the forefront of that success, with its string of world-leading discoveries in Guyana – and now Cyprus. For Qatar Petroleum, Glaucus is a continuation of its 2019 success, following on from its 25% stake in the Total-operated Brulpadda discovery in South Africa. It is also vindication of its recent strategy of partnering with majors in high profile exploration basins.’

However, Morris warns: ‘Commercialisation is not straightforward. There is limited space in local markets and existing export infrastructure. And the volume is insufficient for ExxonMobil and its partner Qatar Petroleum to feed a two-train LNG plant – which had been the partnership’s goal. Does ExxonMobil analyse its results and return to look for more gas? Or could this be an opening for possible collaboration? Eni and Total made a similar giant discovery in the neighbouring block last year. A joint development would potentially serve up enough gas to support 
a greenfield LNG development. A partnership would echo collaboration at ExxonMobil and Eni’s LNG developments in Mozambique.’

News Item details


Journal title: Petroleum Review

Region: Eastern Mediterranean

Countries: Cyprus -

Subjects: Exploration and production, Gas

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