Members of the government and energy stakeholders have reportedly cast doubt over statements made by Israeli energy firm NewMed regarding the development timeline of the Aphrodite gas field in the exclusive economic zone of Cyprus.
NewMed, which holds a 30% stake in the consortium developing the offshore gas field, told the Tel Aviv Stock Exchange on February 15 that commercial exploitation would not begin before 2031, subject to multiple conditions.
Government sources said NewMed’s statements about agreed milestones with operator Chevron were inaccurate, particularly regarding the project’s timeline. They stressed that the 2031 target date cited by NewMed does not appear in the modified Development Plan.
The Israeli company’s announcement suggested the consortium has not committed to specific completion dates for studies and production start through the modified Production and Development Plan. Instead, it indicated that technical studies (preFEED and FEED) would be conducted first, with the Final Investment Decision (FID) potentially coming in 2027.
NewMed highlighted that the main outcome of the recent agreement was Cyprus’s withdrawal of a breach notice issued against the consortium in 2024, which had reportedly caused problems for the companies’ international operations.
The project’s estimated cost stands at $4 billion, according to a Chevron assessment made before the recent Development Plan modification. Cypriot officials said discussions had explored ways to reduce this figure, which they consider achievable.
Government sources expressed displeasure at NewMed’s emphasis on multiple preconditions for the field’s development, noting it is not the first time the Israeli company’s announcements have caused friction.
The firm has been accused of showing reluctance to advance investments in the Aphrodite field.
Context
The Aphrodite gas field, discovered off the coast of Cyprus in 2011, is estimated to contain around 124 billion cubic meters of natural gas. Its development has been a key priority for the Cypriot government, however, the project has faced hurdles, including complex negotiations, technical challenges, and regional geopolitical considerations.
The development plan submitted by Chevron and its partners, Shell and NewMed, outlines a new strategy for extracting and utilising the gas, focusing on a more efficient and cost-effective approach. Instead of constructing extensive onshore facilities in Cyprus, Chevron aims to export the gas to Egypt via a subsea pipeline, leveraging existing infrastructure there.
This decision has paved the way for the project to move forward, with the partners now working towards a final investment decision that will greenlight construction and development.
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