Cyprus and Chevron led group agree on updated offshore field plan

Cyprus and the Chevron-led group have reached an agreement on a new development plan for an offshore gas field near Cyprus. The two parties released a joint press release on Friday.

Chevron tried to change a field development plan for 2019 and this led to protracted discussions on the future of the Aphrodite field, south-east from Cyprus. This plan was agreed upon between Cyprus and Noble, a former license holder and independent energy operator Chevron purchased in 2020.

The Development and Production Plan announced on Friday included a floating production facility, also called a gas-processing facility, and pipelines for the export of gas to Egypt.

"We are looking forward to the rapid development of the field through Egypt's facilities. This is a tangible step toward establishing the role Cyprus envisions for itself in the energy sector within the region. It will be beneficial to Cyprus and its people," said Cypriot Energy minister George Papanastasiou, according the joint statement.

Frank Cassulo said that it was "a major development" at Chevron International Exploration and Production.

"Chevron values the partnership it has with the Republic of Cyprus. We believe that Aphrodite should be developed to the benefit of Cyprus as well as the Eastern Mediterranean Region.

This is in line with our goal to provide affordable, reliable and cleaner energy.

Both parties stated that the approval of the milestones for the DPP and Production Sharing Contract will advance the technical and engineering work related to Front End Engineering and Design and lead to a Final Investment Decision (FID) for Aphrodite.

Aphrodite, Cyprus's first offshore gas discovery was made in 2011. It is estimated to contain 3.5 trillion cubic foot (tcf). Cyprus has discovered gas reserves in four other areas that have not been tapped yet.

Chevron has partnered with Israel's NewMed Energy, a part of Shell. (Written by Michele Kambas).

(source: Reuters)