NICOSIA, Cyprus — ExxonMobil may be entering into a partnership with a consortium that includes Italy’s Eni and France’s Total to jointly explore and exploit gas reserves discovered off the southern coast of Cyprus, according to statements from the Cypriot energy minister on Friday.

Minister George Papanastasiou indicated that negotiations are currently ongoing between ExxonMobil and the Eni-Total consortium to collaborate in bringing their respective gas discoveries to market.

The potential joint venture could see significant advancements if ExxonMobil’s plans to drill an exploratory well next year yield additional hydrocarbon findings.

Cypriot officials have consistently highlighted that the offshore gas deposits could play a crucial role in supporting European efforts to find alternative energy sources in light of global supply challenges exacerbated by Russia’s invasion of Ukraine.

These comments came after a meeting between ExxonMobil’s Vice President for Global Exploration, John Ardill, and Cypriot President Nikos Christodoulides in Nicosia.

The upcoming well, named Pegasus, will be positioned near the Glaucus deposit, which is estimated to hold between 5 to 8 trillion cubic feet of natural gas. This area is currently under exploration licenses held by ExxonMobil and its partner, Qatar Petroleum.

Located in Block 10, Pegasus is adjacent to Block 6, where the Eni-Total consortium has identified the Cronos deposit, estimated to contain 2.5 trillion cubic feet of gas.

Papanastasiou suggested the possibility of developing infrastructure to connect the Glaucus deposit with the Pegasus site, should sufficient gas reserves be confirmed.

In addition, ExxonMobil has scheduled another exploratory well, named Electra, to be drilled in January of the following year in Block 5, situated north of Block 10 and west of Block 6.

Ardill mentioned that once the assessment of the new wells is finished, expected by mid-next year, ExxonMobil will consider various development options moving forward.

Papanastasiou highlighted that these options could encompass the conversion of gas into liquefied form via a floating installation above the wells or transporting the gas to an onshore facility in Cyprus for processing, catering to domestic energy requirements or facilitating exports.

ExxonMobil and Qatar Petroleum hold exploration licenses for two blocks, while the Eni-Total consortium has licenses for seven blocks, and a partnership between Chevron and Shell has one block.

Last week, Christodoulides mentioned that Cypriot authorities are engaging in preliminary discussions with several unnamed energy companies from Persian Gulf nations regarding potential exploration licenses within Cyprus’ offshore exclusive economic zone.