Cyprus will sign a Host Government Agreement and a memorandum of understanding in Cairo on February 17 to commercialise natural gas from its Cronos and Aphrodite fields.
The binding Host Government Agreement between Egypt, the ENI-Total consortium, and Cyprus will outline terms for processing gas from the Cronos field (Block 6) at Egyptian facilities for domestic use and LNG exports.
The agreement, to be signed by Egyptian officials and energy company representatives in the presence of President Christodoulides, follows lengthy negotiations approved by Cyprus. However, gas extraction cannot begin until development plans, FEED studies, and Final Investment Decisions are completed.
A separate memorandum of understanding will be signed between Cyprus, Egypt, and the Aphrodite consortium (Chevron, Shell, NewMed) regarding the field’s estimated 4 trillion cubic feet of gas. Though non-binding, it signals intent to process Aphrodite gas in Egypt for domestic use and exports.
Separately, Cyprus’s energy ministry held talks with Chevron this week regarding the company’s autumn proposal for Aphrodite’s development. The $4 billion plan includes a floating production unit and four drilling wells, reverting to 2019 agreement terms.
President Christodoulides accepted an invitation from Egyptian President Sisi to attend the February 17 signing ceremony, the presidency announced after meeting Egyptian Energy Minister Karim Badawi.
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