ExxonMobil, QatarEnergy Partner to Assess Cyprus Gas Route Via Egypt
The international MoU could signal a strategic focus on global LNG projects, with potential long-term implications for major Bakken operators.
Exxon Mobil Corp. and QatarEnergy have signed a memorandum of understanding with Egypt to study using Egypt's infrastructure to develop natural gas discoveries offshore Cyprus, according to Rigzone. The agreement, reported on May 22, focuses on assessing the potential to flow Cypriot gas through existing Egyptian liquefied natural gas (LNG) export facilities.
For Bakken-focused operators like ExxonMobil, which operates in the basin through its subsidiary XTO Energy, such international partnerships highlight the company's diversified global strategy. While the MoU is specific to the Eastern Mediterranean, major integrated oil companies often balance capital allocation between prolific shale basins like the Bakken and large-scale international gas projects.
The development of new LNG supply routes can influence long-term global gas markets, which indirectly affects associated gas production economics in oil-prone plays. The Bakken formation is primarily an oil play, but its significant associated gas production requires stable market outlets. Large-scale international gas projects coming online can affect supply fundamentals years into the future.
For North Dakota, the immediate impact of this overseas agreement is neutral, as it does not involve Bakken-specific assets or capital. However, it underscores the global scale of the major players active in the Williston Basin. The strategic moves of these integrated companies can eventually influence their broader portfolio decisions, including ongoing commitments to shale operations.
The Rigzone report did not specify timelines or investment figures for the proposed assessment. The MoU represents an early-stage evaluation of commercial and technical feasibility for the potential gas route.
Source
Rigzone
