NICOSIA, 8 July 2025 — ExxonMobil has confirmed the discovery of a significant new natural gas field in Cyprus’ exclusive economic zone (EEZ), further intensifying geopolitical stakes in the Eastern Mediterranean. The find, announced Monday by Cypriot government officials, comes amid growing tensions over regional maritime claims and strategic energy corridors crucial for linking the European Union to alternative gas sources.
Government spokesperson Konstantinos Letymbiotis confirmed on July 8, 2025, that the U.S. energy major, in partnership with QatarEnergy, had identified a 350-meter gas-bearing column during exploration operations at the “Pegasus-1” well in Block 10, southwest of the island. While final reserve estimates remain pending, Cypriot officials welcomed the news as a “step forward” in the nation’s long-term energy strategy. The well was drilled by the Valaris DS-9 drillship in 1,921 meters of water, approximately 190 kilometers offshore southwest of Cyprus.
“This is a strategic milestone for Cyprus,” Letymbiotis said, noting that further geological assessments would be conducted in the coming months to determine commercial viability. This discovery marks the second confirmed gas find by the ExxonMobil-QatarEnergy consortium in Block 10, following the Glaucus-1 discovery announced in February 2019.
Potential Reserves and Regional Impact
Local energy analysts cited in Cypriot media suggest the Pegasus-1 reservoir could hold up to 3.2 trillion cubic feet (tcf) of recoverable natural gas, though this depends on subsurface characteristics such as rock porosity and horizontal extent, which require further appraisal. If confirmed, it would significantly expand Cyprus’ total offshore reserves, currently estimated at 17 to 18 tcf across several confirmed fields, including Aphrodite and Cronos.
Energy Minister George Papanastasiou called it “another good gas field” and reiterated the country’s ambition to become a regional energy hub. The new discovery lies close to the previously drilled Glaucus-1 site, also operated by ExxonMobil, which confirmed a 133-meter gas column and estimated in-place resources of 5-8 tcf, with recoverable reserves in the Glaucus field specifically estimated around 3.7 tcf as of 2022.
Tensions Simmering in the EastMed
The announcement comes against a backdrop of persistent maritime disputes in the Eastern Mediterranean. Turkey continues to challenge the legality of Cyprus’ EEZ, claiming overlapping jurisdiction, particularly near Blocks 6 and 10. Ankara has previously dispatched exploration vessels into contested waters, drawing strong condemnation from Nicosia and Brussels. Turkey’s position is that islands cannot have a full 200 nautical mile EEZ and that it does not recognize the Republic of Cyprus’s exclusive rights, a stance widely refuted by most international states and the United Nations Convention on the Law of the Sea (UNCLOS), which Cyprus has signed and ratified.
In its ongoing EU Politics and European Defense coverage, The Politico has tracked growing EU support for Cyprus’ maritime rights under UNCLOS. The latest gas discovery is likely to escalate political tensions, especially if further development moves ahead without broader regional coordination that includes all stakeholders. The U.S. Department of State and European Commission have consistently emphasized the need for diplomacy and adherence to international law in resolving maritime disagreements, a stance reiterated in EU Council conclusions on Eastern Mediterranean stability. For a comprehensive overview of these complex disputes, the Royal United Services Institute (RUSI) offers in-depth analysis on the geopolitics of Turkish irredentism in the region.
Toward Regional Export Infrastructure
Minister Papanastasiou confirmed that Cyprus is in active talks with Egypt to connect the new Pegasus-1 field and nearby reserves (such as Aphrodite and Cronos) to Egypt’s existing gas infrastructure. Gas would be transported via subsea pipeline and liquefied at Egyptian LNG terminals near Alexandria before heading to global markets, including Europe. This approach was further solidified by agreements signed in February 2025 between Cyprus, Egypt, Eni, and TotalEnergies, specifically for the development and export of gas from Cyprus’s Cronos field via Egypt’s Zohr facilities and Damietta LNG plant, as reported by industry news.
This arrangement is crucial for Cyprus, which currently lacks its own liquefaction capacity. Egypt’s substantial LNG terminals at Idku and Damietta have emerged as vital hubs for the region, particularly as the EU attempts to diversify its energy supply away from Russian gas. Industry analysts have noted that leveraging Egypt’s LNG terminals will allow Cyprus to monetize its resources while contributing to Europe’s broader REPowerEU strategy and short-term gas security objectives. REPowerEU, launched in response to Russia’s invasion of Ukraine, aims to rapidly reduce reliance on Russian fossil fuels and accelerate the green transition.
ExxonMobil’s Growing Eastern Mediterranean Footprint
ExxonMobil and QatarEnergy have operated in Cyprus since 2017 when they were granted exploration rights in Block 10. The latest Pegasus-1 find is their second confirmed reservoir in the zone and reinforces the Eastern Mediterranean’s attractiveness for supermajors, despite its geopolitical complexities. ExxonMobil operates Block 10 with a 60% stake, while QatarEnergy holds 40%.
With competition from Israeli, Turkish, and Egyptian projects in the region, ExxonMobil’s success in Cypriot waters is likely to strengthen U.S. energy influence and Western strategic alignment in an increasingly contested maritime space. In January 2025, Israeli authorities reported new finds near their Leviathan gas field, and Turkey has stepped up exploration activity near the Turkish Republic of Northern Cyprus, which is recognized only by Ankara. Cyprus, by contrast, has sought closer ties with Western firms to ensure legal and technical support and validate its EEZ claims under international law.
Energy Diplomacy at the Center of Cyprus’ Future
The new gas discovery is not just a resource win but a significant diplomatic opportunity for Cyprus. With the EU increasingly defining energy as a pillar of its foreign and security policy, Cyprus’ offshore potential could considerably enhance its strategic relevance to Brussels and other key international partners.
However, this will require careful management of geopolitical sensitivities and ongoing disputes. Energy diplomacy remains at the core of the Eastern Mediterranean’s shifting balance of power, especially as maritime borders remain under contention. The outcome of these energy developments will directly impact the wider stability of the Eastern Mediterranean. For more on how energy resources influence international relations, our Global Conflicts section offers relevant analyses.
Looking Ahead
While the Pegasus-1 discovery is promising, Cypriot officials stress that commercial production remains several years away. Final assessments, including 3D seismic surveys and exploratory appraisal wells, are expected by Q4 2025.
Should the field prove commercially viable, it could feed into EU-bound LNG flows by the end of the decade, aligning with the bloc’s evolving energy and climate policies. The long-term integration of such discoveries into Europe’s energy mix will be crucial for achieving the EU’s climate targets and enhancing its energy security, topics consistently covered in our Green Europe category and broader discussions on the EU Economy.