By Bosphorus News Energy Desk
McDermott has won a subsea contract from Eni Cyprus Limited for the Cronos gas field, taking the Republic of Cyprus' first commercial gas development into engineering and procurement ahead of targeted production in 2028.
The Sept. 8 award covers project management, engineering, procurement and installation support. McDermott called it a "substantial" contract and its first subsea project with Eni. Under the company's classification, substantial contracts are worth between $500 million and $750 million.
Cronos lies in Block 6 of the Republic of Cyprus offshore licensing area. Eni operates the block with a 50% stake, alongside TotalEnergies with the remaining 50%.
The field contains an estimated 3.1 trillion cubic feet of gas. Development plans call for four subsea wells and production of about 500 million cubic feet per day at plateau, equivalent to roughly 2.8 million tonnes of liquefied natural gas (LNG) a year. Eni and TotalEnergies took the final investment decision on July 28.
The project will use Egypt rather than a new long-distance export pipeline.
Cronos gas will travel by subsea pipeline to facilities linked to Egypt's Zohr field before moving through the country's onshore processing system. It will then be sent to the Damietta LNG terminal for export to Europe and other markets. Some volumes can also be sold in Egypt.
The Republic of Cyprus granted the Cronos exploitation licence in June. Eni and TotalEnergies expect production to begin in 2028. If the timetable holds, Cronos will be the first field in the Republic of Cyprus offshore program to enter commercial production.
For Egypt, Cronos adds another gas source to the processing and LNG infrastructure already in place at Zohr and Damietta.
A separate dispute concerns who gets a say over the offshore resources around Cyprus.
Türkiye distinguishes between its own continental shelf claims and the rights it says Turkish Cypriots hold over the island's natural resources. Ankara says part of Block 6 overlaps its continental shelf and argues separately that Turkish Cypriots must have a role in decisions over offshore hydrocarbons.
Türkiye has said the Cronos-1 drilling area lies outside the part of Block 6 covered by its continental shelf claim. When drilling began in 2022, the drillship was operating outside the overlapping area identified by Ankara.
The Turkish Republic of Northern Cyprus (TRNC) Foreign Ministry objected to the March 30 framework agreement between the Republic of Cyprus and Egypt covering the development and sale of offshore gas to Egypt. It said the agreement had been concluded without Turkish Cypriot consent and was "null and void" for the Turkish Cypriot people.
The ministry says Turkish Cypriots are equal co-owners of natural resources on and around the island and must participate in decisions on exploration and development. Türkiye has backed the same position in previous Foreign Ministry statements.
Company and government statements continue to target first gas in 2028.
The field was discovered in August 2022 and appraised in 2024. Since then, the Republic of Cyprus government has approved the development plan, issued an exploitation licence and cleared the export route through Egypt. Eni and TotalEnergies have committed to the investment, and McDermott is now responsible for engineering, procurement and installation support for the subsea system.
Other Republic of Cyprus discoveries remain further from production. Cronos is scheduled to become the first to enter commercial production, with first gas targeted for 2028.
Sources: McDermott, Eni, TotalEnergies, Republic of Cyprus Hydrocarbons Service, Türkiye's Foreign Ministry, TRNC Foreign Ministry, Bosphorus News review and reporting.