Fossil Energy – Development
The Cyprus government and Chevron have reached a deal on how to develop the Aphrodite gas field.
The field is estimated to hold 4.2 trillion cubic feet of gas.
The agreement is mutually beneficial for both Cyprus and Chevron, an Cypriot official said. He did not disclose further details.
The Cypriot energy ministry said in a statement Friday a letter from Chevron affirmed that both sides are in alignment regarding the wider framework of the field’s exploitation. The ministry added that they would intensify discussions in the coming weeks on the agreed-upon development plan for the mutually beneficial exploitation of the site.
Chevron wanted to send the gas to Egypt through a pipeline, but Cyprus preferred to process it on a floating production facility because it would be more economically beneficial for the Cypriot government and would lend more flexibility to supplying other markets.
The agreement ends protracted negotiations that stalled development of the field for years and now paves the way for extraction of the hydrocarbon after a dozen years since the deposit was discovered.
