ExxonMobil and QatarEnergy have signed a declaration of commerciality with the government of Cyprus, setting in motion the next step in developing the deepwater Glaucus and Pegasus fields in Block 10 of the Eastern Mediterranean.
The declaration, announced by QatarEnergy on 30 June, follows a memorandum of understanding (MoU) signed with Egypt in May to establish a framework for monetizing the Block 10 discoveries by supplying gas to Egypt’s LNG export and domestic gas processing facilities.
Under the declaration, the parties agreed to collaborate on the next phase of Block 10's development, including production planning and obtaining regulatory approvals.
A separate collaboration agreement signed by ExxonMobil and QatarEnergy also expands the partners' Block 10 activities to assess additional opportunities, QatarEnergy said in its release.
“This marks an important step in advancing the development of offshore resources in Cyprus and in reinforcing regional energy cooperation across the Eastern Mediterranean,” Saad Sherida Al-Kaabi, Qatar’s minister of state for energy affairs and president and CEO of QatarEnergy, said in the statement.
“We would like to convey our thanks to the Government of Cyprus and to our strategic partner ExxonMobil for their support and cooperation, and we look forward to continuing to work closely with them on Block 10 future activities.”
Egypt Catalyzes East Med Production Growth
The Block 10 MoU was the latest step in Egypt’s drive to become a regional gas hub for the Eastern Mediterranean, with production likely to flow through a pipeline tieback to Egypt’s Damietta LNG export facilities and Port Said gas-processing facilities serving the domestic market.
The agreement adds to a growing list of cross-border gas deals that position Egypt as the main processing and export hub for Eastern Mediterranean gas, including
- In April, Chevron, Shell, and NewMed signed a 15-year agreement to supply about 100 Bcm from the Aphrodite field offshore Cyprus to the Egyptian Natural Gas Holding Co., with an option to extend the deal by a further 5 years.
- Eni and TotalEnergies signed binding framework and commercial agreements last year to transport production from the Cronos discovery in Cyprus Block 6 to Egypt’s Zohr processing facilities and the Damietta LNG plant.
ExxonMobil operates the consortium developing the Glaucus and Pegasus fields with a 60% stake, while QatarEnergy holds the remaining 40%.
Discovered in 2019, Glaucus is estimated to contain approximately 3.7 Tcf of gas, while Pegaus, a second discovery in Block 10, was identified last year. In March 2026, the partnership declared both fields commercially viable, with combined reserves estimated at approximately 7 Tcf.