Eni locks in offshore contractors for Cyprus gas project

Italian energy major Eni has signed the main engineering, procurement, construction, and drilling contracts for the Cronos gas development offshore Cyprus, with a string of major offshore contractors securing work on the project.

The contracts, valued by local media at around $1.8bn, mark the start of the development’s execution phase in Block 6, following a final investment decision by Eni and partner TotalEnergies in July.

Although Eni did not disclose the contractors involved, local media identified eight companies awarded work on the development, covering subsea production systems, pipelines, offshore installation, drilling and associated infrastructure.

Baker Hughes will design, procure, and construct subsea production systems, while TechnipFMC will supply flexible gas production lines.

Dalmine has been selected to supply gas export and monoethylene glycol pipelines, with Oceaneering International responsible for subsea umbilicals and control systems.

China Merchants Heavy Industry will design, construct, transport, and install a floating control unit. US offshore engineering contractor McDermott will handle offshore transportation, installation, tie-ins, and commissioning of subsea pipelines and equipment.

McDermott had already announced a contract worth between $500m and $750m for Cronos in September, marking its first subsea project award from Eni.

Egyptian contractor Petrojet will construct a new onshore gas pipeline connecting the Zohr facilities with the Damietta LNG terminal, while Italy’s Saipem has been selected to provide drilling services using its Saipem 10000 drillship.

Separately, Halliburton secured a bundled well construction and completions contract for Cronos in September, covering drilling fluids, directional drilling, cementing, automation, and other well services.

The Cronos development will involve four subsea wells targeting resources estimated at more than 3trn cubic feet of gas initially in place. Production is expected to begin in the first half of 2028, reaching a plateau of up to 500m standard cubic feet per day.

Gas will be transported to Egypt for processing through existing Zohr-field infrastructure before being liquefied at Damietta for export, primarily to European markets. Eni operates Block 6 with a 50% stake, while TotalEnergies holds the remaining interest.

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