The Exxon Mobil-operated Pegasus-1 well has struck natural gas offshore Cyprus in the Eastern Mediterranean, marking its second discovery in Block 10 with partner QatarEnergy, the Cyprus government said July 7.
Located about 190 km offshore Cyprus, the well indicated approximately 350 m of gas-bearing reservoir, according to a statement from the Cyprus government. The well was drilled by the Valaris DS-9 drillship in 1,921 m of water.
The partnership’s find followed the February 2019 discovery of a high-quality gas-bearing reservoir at the Glaucus-1 well and confirmed in March 2022 by the Glaucus-2 appraisal well.
“Further assessment will be required in the coming months to evaluate the results,” Cyprus government spokesman Konstantinos Letymbiotis said in a statement. The country’s officials were briefed on the results during a videoconference with Exxon Mobil executives.
Insight from the Center for European Policy Analysis show the Eastern Mediterranean countries of Cyprus, Egypt and Israel together have an estimated 2.5 Tcm of gas reserves. The region could prove to be another prolific source of gas supplies in the EU, joining mature gas fields off Norway.
The region’s potential has also attracted companies that include Chevron and Eni SpA, both of which are pursuing developments with partners.
Exploration
BLM Seeks Public Input on Onshore Lease Sales
The U.S. Bureau of Land Management (BLM) is seeking public comment on eight oil and gas parcels that may be included in a March 2026 lease sale.
Together, the parcels span 506 acres in Arkansas, Louisiana, Michigan and Mississippi.
Details on the parcels, maps and how to comment are available on the BLM’s ePlanning website for acreage in Arkansas and Louisiana, Michigan and Mississippi. The comment period ends July 30.
The BLM is also seeking public input on the proposed sale of oil and gas leases in Montana and North Dakota. Explorers may have a chance to bid on 20 oil and gas parcels totaling nearly 4,270 acres in January 2026.
The parcels being analyzed, maps and instructions on how to comment are on the BLM’s ePlanning website. The comment period closes July 28.
Field Development
Equinor, Partners Greenlight $1.3B Johan Sverdrup Oilfield Expansion
Equinor and its partners have agreed to invest about $1.3 billion to expand the Johan Sverdrup Field in the North Sea, aiming to increase recovery by as much as 50 MMboe with new subsea infrastructure.
Ambitions are to boost the subsea field’s 66% recovery rate to 75%, compared to the average 47% for the Norwegian Continental Shelf.
“In 2024, Johan Sverdrup set a production record with 260 million barrels of oil, the highest annual oil production ever from a Norwegian field,” said Marianne Bjelland, vice president for Johan Sverdrup. “Every third barrel of oil from the Norwegian continental shelf now comes from the field. Phase 3 is an important contribution to maintaining high production from Johan Sverdrup in the years to come.”
The company on July 1 said development plans for the Phase 3 expansion include two new subsea templates in the Kvitsøy and Avaldsnes areas. There will be a total of seven oil production wells and one water injection well tied back to existing templates and pipelines to the P2 platform for processing and export.
Equinor and partners Aker BP, Petoro and TotalEnergies EP Norge are targeting between 40 MMboe and 50 MMboe. Artificial intelligence was used to help analyze field layouts and well paths, speeding decision-making and leading to cost savings of about $13 million, Equinor said. Plans also include adding two additional well slots for future expansion opportunities.
Technip was awarded a contract valued at approximately $526 million for engineering, procurement, construction and installation for the subsea project.
The partnership has submitted a notification to authorities for the planned expansion project, which is subject to governmental approval.
Pampa Energia Plans $426MM Oil, Gas Plant in Argentina
(Reuters) Argentina’s Pampa Energía has applied to build an oil and gas treatment plant at the Vaca Muerta shale formation, the company said July 1, in a project worth $426 million.
The facility, planned for the company’s Rincón de Aranda Field in the Neuquén province, is expected to start operating next year, with crude oil exports valued at about $1.2 billion set to start in 2027.
The project includes a central processing facility, pipelines, storage terminals and other infrastructure, and will connect to the Vaca Muerta Sur oil pipeline and Perito Moreno gas pipeline, the company added.
Pampa said the plant is part of a broader $1.5 billion development plan aimed at scaling up production tenfold at Rincón de Aranda.
Technology
Expro Deploys Rig Floor Safety Technology
The Frank’s Tubular Running Services division of Expro has launched sensor technology that aims to increase safety on land-based drilling rigs.
Expro on July 3 said its new Catwalk Sensor technology emits real-time audible alerts whenever pipe enters the V-door area. The warning system alerts personnel on the rig floor to potential hazards. The technology is installed on the rig’s catwalk or slingshot system.
“This is an effective and powerful solution,” said Jeremy Angelle, vice president of well construction at Expro. “Even on the most basic rig floors, the Catwalk Sensor helps create a safer environment by alerting crews to pipe movement before an incident can occur.”
Tampnet Installs 5G Infrastructure on North Sea Oil Platform
Tampnet on July 1 said it has installed private mobile edge compute/5G infrastructure on the Aker BP-operated Edvard Grieg production platform in the North Sea.
The technology enables full platform wireless coverage, edge compute for offshore data processing, real-time support for sensor data and predictive maintenance, support for remote access to AI tools and other support offerings, according to news release.
“Full wireless coverage opens up new possibilities of digital, intelligent and autonomous operations, and marks an important step in Aker BP’s digital transformation program,” said Thomas Øvretveit, senior vice president of operations at Aker BP.
Tampnet said the technology also has been ordered for additional Aker BP-operated assets, including Yggdrasil, Fenris, Valhall, Alvheim, Ivar Aasen and Skarv.
Business
Anadarko Petroleum Taps Valaris for Drillships
Valaris Ltd. on July 6 said Occidental subsidiary Anadarko Petroleum has extended a contract for one drillship and awarded it a new contract for another.
The combined addition to contracted revenue backlog is approximately $760 million, the offshore drilling service company said.
The 940-day contract extension is for drillship Valaris DS-16, while the new 914-day contract is for drillship Valaris DS-18 that will start in mid-fourth quarter 2026.
“We’ve secured approximately $1.9 billion in new contract backlog so far this year, reflecting solid execution of our commercial strategy and our ability to deliver safe and efficient operations for our customers,” said Valaris CEO Anton Dibowitz. “We remain focused on securing additional attractive, long-term contracts for our high-specification assets that will further support our earnings and cash flow.”
EnerMech Lands Contract for Dana Petroleum’s Triton FPSO
Triton FPSO. (Source: EnerMech)
Dana Petroleum has awarded a three-year fixed term contract to EnerMech for offshore shutdown support services for the Triton FPSO vessel in the North Sea, according to a July 3 news release.
The contract, which has two-year extension option periods, includes flange management, bolt torque and tensioning, on-site machining, nitrogen purging, nitrogen and helium leak detection and drain, flush, purge and vent services.
EnerMech said it will use its proprietary System Integrity Management software, which provides full lifecycle tracking and real-time insights.
“Supporting the Triton FPSO marks a significant milestone for our North Sea operations and aligns with our wider global growth strategy,” EnerMech CEO Charles ‘Chuck’ Davison Jr. said.
Sonatrach, Eni Sign $1.35B Production Sharing Deal
(Reuters) Algerian state oil and gas company Sonatrach and Italy’s Eni SpA have signed a production sharing contract to explore and develop hydrocarbons in Algeria, Sonatrach said in a statement on July 7.
Total investments for exploration and development work in the Zemoul El Kbar contractual perimeter, which is located in the Berkine Basin some 300 km (186 miles) east of Hassi Messaoud, are estimated at $1.35 billion, the statement said.
The expected production in the framework of the development of the Zemoul El Kbar area is estimated at 415 million barrels of oil equivalent, including 9.3 billion cubic meters of gas over the contractual period.
YPF Turnover Ruling Casts Shadow Over Argentina Shale Hopes
(Reuters) A ruling by a U.S. court ordering Argentina to hand over the 51% stake it holds in state energy firm YPF has cast a shadow over the country’s plans for its huge Vaca Muerta shale formation and hopes to return to global markets.
U.S. District Judge Loretta Preska said on June 30 that Argentina must transfer its YPF shares within 14 days to partially satisfy an earlier $16.1 billion court judgment against the country over its 2012 nationalization of the firm.
The government of Argentina, under pro-market libertarian President Javier Milei, said it would appeal the ruling to “defend national interests.”
The judgment adds uncertainty to Argentina’s plans to turn the Vaca Muerta, the world's No. 2 shale gas reserve and No. 4 for shale oil, into a key global energy producing region that would help bring in foreign currency needed to prop up the economy.
YPF leads development of the Vaca Muerta, often partnering with other local and international firms including Shell and Chevron. The Vaca Muerta has hit production of over 400,000 barrels per day of oil and some 70 million cubic meters of gas per day.
“Control of YPF is important for Milei; that’s why an appeal is the only option for him,” said Marcelo García, director for the Americas at New York-based risk consultancy Horizon Engage.
“YPF leadership in Vaca Muerta is crucial for the medium- to long-term sustainability of his economic program, because it should bring the U.S. dollars the economy lacks.”
The legal dispute arose from Argentina’s 2012 seizure of the 51% YPF stake held by Spain’s Repsol, without tendering for shares held by minority investors Petersen Energia Inversora and Eton Park Capital Management.
In 2023, Preska awarded $14.4 billion to Petersen and $1.7 billion to Eton Park in the same case, which Argentina is also appealing. The plaintiffs are represented by litigation funder Burford Capital, which expects to receive some 35% and 73% of Petersen's and Eton Park's respective damages.
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