The Aphrodite consortium led by Chevron Corp has secured dedication from related events to execute a time period sheet and a bunch authorities settlement (HGA) to allow the piped export to Egypt of 100% of manufacturing from the sphere primarily positioned in Cypriot waters.
Finally the events would signal a binding settlement for no less than 15 years and as much as 20 years of gross sales to state-owned Egyptian Pure Fuel Holding Co (EGAS). Export volumes could be elevated to 700 million cubic ft per day after no less than six years from when business provide started, Aphrodite co-owner NewMed Power LP mentioned in a inventory submitting Thursday.
An evaluation commissioned by NewMed, printed final month, elevated one of the best estimate of contingent pure gasoline sources on Cyprus’ facet of Aphrodite, positioned on the maritime border with Israel, by about 4 p.c to three.67 trillion cubic ft.
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“Within the TS [term sheet], the events confirmed the business rules and circumstances that can function a foundation for the signing of a binding settlement for the availability of pure gasoline from the Aphrodite reservoir to the Purchaser in relation to all the gasoline portions recoverable from the reservoir”, the regulatory disclosure mentioned.
In the meantime, underneath the HGA, the businesses agreed to execute agreements to construct a pipeline to hold Aphrodite gasoline to EGAS. “The ultimate supply level shall be decided on the metering station on the onshore terminal in Port Mentioned, Egypt, whereas the offshore supply level shall be outlined because the Cyprus-Egypt maritime border crossing level”, NewMed mentioned.
“The HGA additional offers that for functions of implementation of the transmission undertaking, a particular goal firm to be integrated in Egypt – Aphrodite Midstream Co (AMC), shall be based, and shall be held by the Aphrodite companions and by an entity to be appointed by the Egyptian authorities, with every one of many shareholders financing its share in line with its pro-rata holdings (but to be decided) and underneath the identical circumstances”, NewMed mentioned.
“Within the HGA, the Egyptian authorities confirmed its full dedication to help the transmission undertaking, and undertook that the State’s authorities will work on taking all the actions required for execution of the transmission undertaking”, it added.
NewMed expects the time period sheet and the HGA to finish signatures “within the coming weeks”.
Aphrodite largely lies in Block 12 in Cyprus’ unique financial zone, whereas “just a few p.c” of the world is in Israel’s Ishai/370 lease, in line with NewMed. Negotiations have been happening between the Cypriot and Israeli governments on in-principle agreements about their pursuits within the area, NewMed mentioned in a submitting March 9.
“In these agreements, the reservoir might be developed by the curiosity holders on the Cypriot facet, whereas the holders of the Ishai Lease and the state of Israel will obtain one-time compensation for his or her share within the reservoir, the speed of which shall be decided by a global professional”, the submitting mentioned.
Final yr the Aphrodite consortium sanctioned pre-construction works for the delayed undertaking agreed with Nicosia.
“[T]he companions within the reservoir adopted a call on graduation of FEED [front-end engineering design] for the manufacturing methods and the transmission infrastructure within the sum of approx. $105.7 million”, NewMed mentioned in a submitting December 23, 2025.
Earlier final yr Cyprus permitted a $4-billion up to date improvement plan, following failed talks on cost-saving modifications to the unique phrases permitted by the federal government November 2019, in line with a NewMed submitting February 15, 2025.
“Concurrently, an modification was signed between the companions and the Cypriot authorities to the PSC [production sharing contract], within the context of which the companions undertook, inter alia, to undertake a ultimate funding choice in 2027”, the February 2025 announcement mentioned.
The brand new plan envisions 4 preliminary manufacturing wells to be related to a floating manufacturing unit with a capability of about 800 million cubic ft a day.
Chevron operates Aphrodite with a 35 p.c stake by way of Chevron Cyprus Ltd. Shell PLC’s BG Cyprus Ltd additionally owns 35 p.c. NewMed, a part of Israel’s Delek Group, holds the remaining 30 p.c.
To contact the creator, e-mail jov.onsat@rigzone.com
