Cyprus and Egypt signed landmark energy agreements on Monday for the development of the Aphrodite gas field and Block 6.
The agreements, signed at the EGYPES 2025 exhibition in Cairo, include a memorandum of understanding for Aphrodite gas field commercialisation and a Host Government Agreement for Block 6 development in Cyprus’s exclusive economic zone.
President Christodoulides called it a “historic day” during the signing ceremony, stating the agreements “change the dynamics not only for the region but also for Europe” and demonstrate both countries are “reliable and predictable partners.”
The Aphrodite field agreement, signed between Cyprus, Egypt, and the licensee consortium of Chevron Cyprus Limited, NewMed Energy LP, and BG Cyprus Limited, establishes a framework for effective gas commercialisation.
The Block 6 Host Government Agreement defines cooperation terms between the licensed consortium (ENI/TOTAL) and Egypt for commercialising gas discoveries within the block, including the Cronos, Zeus, and Calypso fields.
The agreements aim to establish Cyprus as an energy hub in the Eastern Mediterranean while ensuring competitive electricity prices and energy security for Cypriots.
Egyptian President Abdel Fattah al-Sisi welcomed his Cypriot counterpart at the ceremony, emphasising their shared commitment to enhancing cooperation for the benefit of both nations.
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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