Eni, the Italian oil and gas company, has signed the main engineering, procurement, construction, and drilling contracts for the Cronos gas project in block 6 off the coast of Cyprus. This action was officially launched on October 26 at a ceremony in Nicosia attended by Nicos Christodoulides, the President of Cyprus, and Michalis Damianos, the Minister of Energy of the country.
Contract Details
The signed contracts include a floating control unit, transportation and installation, subsea lines, underwater production system, flexible lines, communication cables, a land pipeline under an EPC contract, and drilling rig services. Eni has not disclosed the names of the contractors. These contracts were signed following the final investment decision on July 28.
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Production Capacity and Timeline
The Cronos field has more than 3 trillion cubic feet (Tcf) of gas in its initial state. Gas production from this field is expected to begin in the first half of 2028 and reach a stable level of up to 500 million cubic feet per day (MMscfd). To expedite development, Eni will rely on existing infrastructure: gas will be transported to Egypt and processed through existing facilities, including the Zohr field. This gas will then be liquefied at the Damietta LNG facilities for export, primarily to Europe.
Importance of the Project for Cyprus and Eni
The Cronos project is recognized as the first hydrocarbon development in Cyprus and Eni's first project in the country. Eni is the operator of block 6 with a 50 percent stake, and TotalEnergies will act as its partner in this project. In addition to block 6, Eni is also the operator of block 8 and has stakes in blocks 7 and 11, which are operated by TotalEnergies.
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