ENI SET TO SIGN CONTRACTS WORTH UPTO $1.8bn FOR CYPRUS CRONOS GAS PROJECT - in-cyprus 25/10
Italian energy company Eni is expected to sign contracts worth up to $1.8 billion in the coming days for drilling and subsea infrastructure to develop the Cronos gas discovery in Cyprus’s Exclusive Economic Zone, according to the Wall Street Journal.
The contracts with contractors will cover the construction of subsea infrastructure needed to extract, process and transport the gas to Egypt through infrastructure at the Zohr field, the WSJ reported.
The total value of the contracts is expected to range between $1.3 billion and $1.8 billion, with the agreements potentially being signed as early as Monday, 26 October.
The development increases the prospects of plans to begin the first production of Cypriot natural gas in 2028 moving forward.
Development rights for the Cronos field are held by Eni and France’s TotalEnergies, with Eni serving as operator.
The two companies decided in July to proceed with the project, prioritising its rapid development and taking the final investment decision on the next steps.
In September, US energy services company Halliburton announced that it had secured a contract for drilling work on the project, while McDermott said it was actively pursuing the subsea work.
The McDermott contract is valued at between $500 million and $750 million, according to the WSJ.
Gas from Cronos will be transported to the Damietta liquefied natural gas facilities in Egypt, from where it will be shipped to other markets.
The Cronos field holds initial gas volumes exceeding 3 trillion cubic feet, equivalent to about 85 billion cubic metres.
Once production stabilises, output is expected to reach 500 million cubic feet of natural gas per day, equivalent to about 14.2 million cubic metres a day.
