Eni's Cronos Gas Project Enters Execution as FCU and Drilling Work Advance
Eni has awarded the main contracts for the Cronos gas development offshore Cyprus, with CMHI building the FCU and Saipem, Baker Hughes, Halliburton and McDermott supporting drilling and subsea execution.
Eni has moved the Cronos gas development offshore Cyprus into the execution phase after awarding the main engineering, procurement, construction and drilling contracts. China Merchants Heavy Industry will build the floating control unit (FCU), while Saipem, Baker Hughes, Halliburton and McDermott will support drilling, the subsea production system, well construction and subsea installation. First gas is targeted for the first half of 2028.
The FCU is being built by China Merchants Heavy Industry (Jiangsu), part of China Merchants Industry. Design, testing and equipment procurement are under way. The unit will provide offshore production-control and support functions as part of a development system that also includes subsea wellheads, manifolds, flowlines and umbilicals.
Cronos will not use a large offshore gas-processing platform. Production will instead be transported by subsea pipeline to Egypt, processed through existing facilities serving the Zohr field and then sent to the Damietta LNG plant for liquefaction and export, primarily to European markets.
Saipem will carry out the offshore drilling campaign using the Saipem 10000 drillship in Cyprus’ exclusive economic zone. Operations are expected to begin between November 2026 and January 2027. Saipem said its new drilling contracts in Cyprus and Ghana have a combined value of approximately US$121 million.
Halliburton will provide integrated well construction and completion services for Cronos. Its scope includes drilling fluids, directional drilling, automation and remote operations, cementing, surface well testing and coiled-tubing services, complementing the drilling vessel and offshore drilling services supplied by Saipem.
Baker Hughes will supply the subsea production system, including four deepwater subsea trees as well as wellheads, connectors, manifolds, topside control systems and related services. The first equipment is scheduled for delivery in the first half of 2027.
McDermott’s scope covers project management, engineering, procurement and support for offshore installation. Its subsea engineering teams and construction fleet will take part in deploying the subsea pipelines and associated infrastructure. McDermott classified the award as a “major” contract, a category it values at between US$500 million and US$750 million.
Cronos is located in Block 6 of Cyprus’ exclusive economic zone. Eni operates the block with a 50% interest, while TotalEnergies holds the remaining 50%. The field was discovered in 2022 and appraised in 2024, with the partners taking a final investment decision in July 2026.
The field contains more than 3 trillion cubic feet of gas initially in place and is planned for development through four subsea wells. Plateau production could reach 500 million cubic feet per day, equivalent to approximately 2.8 million tonnes of LNG a year. Once on stream, Cronos is expected to become Cyprus’ first gas development to enter commercial production.