The Energy Ministry and Chevron have reached an agreement on a new development plan for the Aphrodite gas field, featuring a floating production unit and an independent pipeline to Egypt.
Energy Minister George Papanastasiou and Chevron Vice President Frank Cassulo approved modifications to the Development and Production Plan (DPP) for the natural gas field, located in Cyprus’s Block 12, energy ministry officials said on Thursday.
The agreement follows Cyprus’s original proposal for the project structure, which had initially met resistance from the American energy giant.
Both parties aim to expedite preliminary technical studies to assess investment costs and commercial prospects.
The minister will travel to Cairo on Monday to witness the signing of agreements between the Egyptian government and the ENI-Total consortium for gas supply from the Cronos field, alongside a memorandum between Egypt, Cyprus, and the Aphrodite consortium of Chevron, Shell, and NewMed.
While specific financial terms remain under negotiation, the parties have agreed to accelerate the pre-Front End Engineering Design (pre-FEED) study, followed by the final FEED study.
A Final Investment Decision (FID) will follow if the development proves commercially viable.
“We look forward to the rapid development of the field through Egyptian facilities, a tangible step towards establishing Cyprus’s envisioned role in the region’s energy sector”, Papanastasiou said.
Chevron had initially estimated the project would cost around 4 billion euros, a figure Cyprus considered excessive.
Sources suggest recent intensive negotiations have led to optimism about substantially lower costs for the floating production unit.
“Chevron values the cooperation with the Republic of Cyprus and believes Aphrodite’s development is crucial for both Cyprus and the Eastern Mediterranean”, Cassulo said, adding that the project aligns with the company’s strategy to provide affordable, reliable, and increasingly clean energy.
The agreement ends a challenging period in relations between the parties, during which the consortium’s continued management of the field had been questioned.
