ExxonMobil, in collaboration with QatarEnergy, commenced drilling for natural gas on Friday in an exploration block located within Cyprus's exclusive economic zone, as announced by President Nikos Christodoulides.

The U.S. energy giant and Qatar's state-owned company initiated their drilling operations in Block 5, according to a post by Christodoulides on X.

The Cypriot president emphasized that “Cyprus progresses exploration activities, aiming to be an alternative and reliable source of Natural Gas for the EU.”

Cyprus has expressed optimism that its maritime territory may contain substantial natural gas reserves, akin to those found in the Eastern Mediterranean near Egypt and Israel.

At the end of the previous year, Exxon indicated plans to begin drilling an exploratory well offshore Cyprus in January 2025, focusing on natural gas.

“We've spent the last two years collecting very detailed, three dimensional seismic data ... We've identified several large prospects, and the next stage is to bring in a drilling rig and to test those,” stated John Ardill, Vice President for Global Exploration at ExxonMobil, in a November interview with Reuters.

“There is huge potential for gas exploration,” Ardill said, adding that Exxon sees the Electra prospect as “highly promising.”

Other major international companies are also engaged in natural gas exploration off the coast of Cyprus.

In 2022, Italy's Eni and France's TotalEnergies made two significant discoveries, named Cronos and Zeus.

Last year, Eni announced the completion of a second appraisal well at the Cronos gas discovery offshore Cyprus, projecting increased production capacity as it aims to expedite the field's development. Eni serves as a partner and operator in seven exploration licenses in the region.

According to George Papanastasiou, Cyprus's Minister of Commerce, Industry, and Energy, the country could potentially commence its first natural gas production as early as 2026, as he mentioned in a recent interview with Reuters.

Exxon and Chevron, another major U.S. oil company, are both interested in exploring offshore oil and gas resources in Greece within the Mediterranean Sea.