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The Cypriot government has approved the updated plan for the Aphrodite gas field, filed by Chevron-led consortium, which will see the construction of a floating production unit (FPU) and a pipeline for exporting gas to Egypt. Following Cypriot government’s approval of the plan, an amendment was signed to the Production Sharing Contract (PSC), which regulates updated milestones for development of the reservoir and revokes the notice of breach that was issued to the partners in August 2024. The updated development plan includes the construction of a floating independent production facility (FPU) above the Aphrodite gas field’s reservoir, with an estimated maximum production capacity of approximately 800 MMCF per day, through four producing wells at the initial stage. From there, the natural gas will be exported to Egypt via a subsea pipeline that will be connected to the Egyptian transmission system, according to Israeli firm NewMed Energy, which is a partner in the project, along with the operator Chevron, and BG Cyprus, part of Shell. The updated plan was approved on February 14, 2025, by the Cypriot government approved. Concurrently, an amendment was signed between the partners and the government to the PSC, in the context of which the partners undertook, inter alia, to adopt a final investment decision (FID) in 2027. According to a current estimate of the operator, before completion of technical-economic feasibility studies, including performance of the front-end engineering design (FEED) and pre-FEED, the estimated cost of the updated development plan is estimated at $4 billion. It is emphasized that execution of the updated development plan and reaching the adoption of an FID are contingent on performance of the pre-FEED and the FEED and the results thereof, along with other factors. The supply of natural gas from the Aphrodite gas field is expected to commence in 2031. Aphrodite holds an estimated at 3.5 trillion cubic feet of gas. It is located in the area of Block 12, around 170 km offshore Limassol in Cyprus. |
