By Bosphorus News Energy Desk
ExxonMobil and QatarEnergy are in legal talks with the Republic of Cyprus over possible exploration licences for offshore Blocks 4 and 10A as the partners prepare further drilling at Pegasus in December. Energy Minister Michalis Damianos confirmed the negotiations on November 10, but neither block has been awarded.
Damianos said the parties were working through contract terms and could sign agreements within two to three months. The Energy Ministry had confirmed the talks in October, after the consortium expressed interest in the two areas. Both blocks are separate from Block 10, which holds the Pegasus and Glaucus discoveries.
President Nikos Christodoulides acknowledged advanced discussions with ExxonMobil in May without naming the blocks. The possible Block 4 licence was examined in earlier coverage of Türkiye's maritime claims. The government has since identified Blocks 4 and 10A as the areas under discussion.
Block 4 and Türkiye's Earlier Objection
Türkiye's objection to parts of Block 4 predates the current talks. On February 15, 2012, Türkiye's Foreign Ministry challenged a Republic of Cyprus offshore licensing round, saying parts of Blocks 1, 4, 5, 6 and 7 overlapped its claimed continental shelf. The objection concerned portions of those blocks, not their entirety.
The ministry raised a different objection when ExxonMobil began drilling in Block 10 in November 2018. It argued that Turkish Cypriots had equal rights to the island's natural resources and criticised exploration without their participation. Block 10 was absent from the ministry's 2012 list of partial continental shelf overlaps. Determining whether future operations in Block 4 fall within Türkiye's claimed area would require the final licence coordinates.
ExxonMobil has also pursued exploration cooperation with Türkiye. On January 8, 2026, Turkish Petroleum Corporation (TPAO) and ExxonMobil affiliate ESSO Exploration International Limited signed a memorandum covering possible oil and gas exploration in the Black Sea, the Mediterranean and other mutually agreed areas. John Ardill, ExxonMobil's vice president for global exploration, signed it in Istanbul.
Ardill met Christodoulides on November 10 to discuss the Cyprus programme. Neither official announcement links the TPAO memorandum to ExxonMobil's Block 10 operations or the proposed new licences.
Pegasus Drilling and the Development Timetable
At that meeting, Ardill said preparations were complete for further drilling and testing at Pegasus in December. ExxonMobil plans to submit a development and production plan for the Block 10 discoveries in 2027, with additional seismic work planned for early that year.
On June 30, the partners and the Republic of Cyprus signed a joint statement on the marketability of Pegasus and Glaucus, following the consortium's declaration submitted in March. Damianos outlined a timetable targeting a final investment decision in 2029 and first gas in 2033. These remain projected milestones for Block 10, not for the proposed Blocks 4 and 10A licences.
Energy expert Charles Ellinas had warned about the prospect of continued concessions to energy companies. No new financial or contractual concessions were disclosed on November 10.
ExxonMobil and QatarEnergy are also studying an export route through Egypt. A May memorandum established a framework to study connecting the Cyprus discoveries to Egyptian processing and liquefied natural gas facilities, an option examined in earlier Bosphorus News coverage of Egypt's LNG infrastructure. Egypt's Petroleum Ministry said on August 6 that the parties had agreed to prepare work programmes and timelines for technical, commercial and regulatory studies.
No final export route, financing arrangement or construction commitment for Glaucus and Pegasus has been announced.
Sources: Republic of Cyprus Presidency, Republic of Cyprus Ministry of Energy, Türkiye's Ministry of Foreign Affairs, Türkiye's Ministry of Energy and Natural Resources, Egypt's Ministry of Petroleum and Mineral Resources, Cyprus News Agency, Bosphorus News review and reporting.