ExxonMobil Launches Natural Gas Exploration Project Offshore Cyprus

Exxon Mobil Corporation XOM, the U.S. oil and gas giant, has begun exploratory drilling offshore Cyprus in partnership with QatarEnergy to tap into the potential natural gas reserves in the region. ExxonMobil had previously announced that its drilling operations would include the Electra and Pegasus prospects. The president of Cyprus mentioned that drilling had commenced at the Electra prospect last week.East Mediterranean Gas Reserves Yield Promising ResultsThe Eastern Mediterranean region has drawn significant interest from several oil and gas producers due to vast natural gas discoveries made in recent years. The area showed promising results, as highlighted by a discovery made by ExxonMobil in 2019 at the Glaucoma well. Following Russia's 2022 invasion of Ukraine, efforts have been made to explore natural gas in the eastern Mediterranean region, aiming to secure alternative sources of gas and reduce dependence on Russian energy supplies.XOM secured exploration licenses in Cyprus in 2017. Several other international energy majors, including U.S.-based Chevron, Italian multi-energy firm Eni and France's TotalEnergies, have also been awarded exploration licenses in the region.Cyprus’ Ambitions to Become a Reliable Gas SupplierCyprus has made some modest offshore gas finds compared to larger discoveries made in the neighbouring countries of Egypt and Israel. However, the country has not put any gas into production yet. Cyprus is looking to establish itself as an alternative supplier of gas in the European Union (EU).Challenges Faced Over Regional DisputesHowever, challenges loom for the nation as drilling activities in Cypriot waters are closely tracked by Ankara, per a statement from the Turkish Defence Ministry. ExxonMobil's drilling activities are carried out in an area that lies beyond the continental shelf boundaries controlled by Turkey. The region is known to have substantial reserves of natural gas; however, territorial disputes hinder the development of these resources.Cyprus and Egypt Explore Collaboration OpportunitiesAdditionally, Cyprus’ energy minister has engaged in discussions with Egypt’s Petroleum Ministry, focused on working in collaboration to develop joint infrastructure projects, per Reuters. These efforts may lead to the formation of an energy corridor connecting the Eastern Mediterranean to Europe.XOM’s Zacks Rank and Key PicksXOM currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the energy sector are Sunoco LP SUN,Equinor ASA EQNR and Cheniere Energy, Inc. LNG. Sunoco and Equinor currently sport a Zacks Rank #1 (Strong Buy) each, while Cheniere Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores and distributors. Its current distribution yield is greater than that of the industry's composite stocks, providing unitholders with consistent returns.Equinor ASA is one of the leading integrated energy companies globally and the second-largest supplier of natural gas in Europe. The company’s expansion in the renewable energy space positions it for long-term growth as more and more countries transition toward cleaner energy solutions to meet their climate goals. Its strategic pivot toward low-carbon energy solutions unlocks new revenue streams in the growing market for clean energy and carbon management solutions.Cheniere Energy is involved in LNG-related businesses, which include LNG terminals and natural gas marketing. The company has achieved a milestone with the first production from the first LNG train of its Corpus Christi Stage 3 Liquefaction Project. The project, which includes seven midscale LNG trains, aims to expand the production capacity of the Corpus Christi Liquefaction facility. This expansion is expected to enhance Cheniere's position in the rapidly growing global LNG market, enabling it to meet the rising demand for LNG, both in the United States and internationally.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Sunoco LP (SUN): Free Stock Analysis Report Cheniere Energy, Inc. (LNG): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks