Cyprus Approves Updated Development Plan for Chevron’s Aphrodite Gas Field

Chevron Cyprus, a subsidiary of the U.S.-headquartered oil major Chevron, along with its partners BG Cyprus (Shell) and NewMed Energy, have received approval from the government of Cyprus for an updated development plan of an offshore gas field reservoir in Block 12 located in the Eastern Basin of the Mediterranean Sea.

The approval of the modifications to the Aphrodite gas field development and production plan (DPP) and the production sharing contract (PSC) milestones is a significant step towards advancing technical and engineering work related to the front-end engineering and design (FEED) for the project, leading to a final investment decision (FID).

George Papanastasiou, Cyprus’ Minister of Energy, Commerce, and Industry, stated, “The Republic of Cyprus has approved today the development and production plan of the Aphrodite field, following the official submission by the Aphrodite consortium, Chevron Cyprus Limited, BG Cyprus Limited (Shell), and NewMed Energy LP.”

He further added, “We look forward to the expeditious development of the field via Egypt’s facilities, a tangible step towards establishing the role that Cyprus envisions in the energy sector of the region, for the benefit of the country and its people. We will be monitoring closely the fulfillment of the obligations of Chevron and its partners, on the basis of the approved development and production plan and the production sharing contract.”

The Ministry of Energy, Commerce, and Industry, together with joint venture partners – Chevron, Shell, and NewMed – have confirmed the approval of the modifications proposed to the development and production plan for Aphrodite to move forward with the project’s development. The green-lighted DPP includes a floating production unit (FPU) in the Cypriot Exclusive Economic Zone (EEZ) and a pipeline for gas export to Egypt.

Frank Cassulo, Vice President, Chevron International Exploration & Production, emphasized, “We welcome this major development and our productive engagements with the Cypriot government. Chevron values its partnership with the Republic of Cyprus and we believe it is important that Aphrodite is developed for the benefit of the Republic of Cyprus and the Eastern Mediterranean region. This is also aligned with our strategy to deliver affordable, reliable, and ever-cleaner energy.”

The Aphrodite discovery in Block 12 in September 2011 confirmed significant gas reserves, with a production license granted in November 2019. The reservoir, located 160 km south of Limassol and 30 km northwest of Israel’s Leviathan field, has a sea depth of 1,700 meters.

Chevron’s updated development plan for the Aphrodite field envisions the production and processing of natural gas through an FPU with a maximum production capacity of around 800 million cubic feet per day, exported to Egypt via a pipeline. The approval of the DPP is a crucial development in strengthening energy ties between Cyprus and Egypt.