Chevron Corp, Shell PLC and NewMed Power LP have sanctioned pre-construction works for the delayed Aphrodite pure gasoline discipline growth offshore Cyprus.
“[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 Power, owned by Israel’s Delek Group, mentioned in a inventory submitting.
In the meantime negotiations proceed between the consortium and the Cypriot and Egyptian governments about exporting output to Egypt, NewMed Power added.
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Early this 12 months Nicosia authorized a $4-billion up to date growth plan, following failed talks on cost-saving modifications to the unique phrases authorized by the federal government November 2019, in accordance with a regulatory disclosure by NewMed Power 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 remaining funding choice in 2027”, the February announcement mentioned.
Together with the approval of the brand new plan, Cyprus additionally revoked a discover of breach issued August 2024 over the co-venturers’ failure to launch a FEED, a milestone agreed within the PSC, in accordance with the February announcement.
The brand new plan envisions 4 preliminary manufacturing wells to be linked to a floating manufacturing unit with a capability of about 800 million cubic ft a day, which might be shipped to Egypt by way of a subsea pipeline, in accordance with that announcement.
On February 17 NewMed Power introduced a non-binding memorandum of understanding (MOU) involving the consortium, the federal government of Cyprus and Egypt, and state-owned Egyptian Pure Gasoline Holding Co (EGAS) about sale preparations and the development of the required transmission infrastructure.
“In keeping with the MOU, EGAS shall function the only real purchaser of the pure gasoline produced from the reservoir, whereas the companions shall be granted an choice to buy particular portions of the gasoline that’s offered to EGAS as liquefied pure gasoline”, NewMed Power mentioned then.
Chevron operates Aphrodite, which sits on Block 12, with a 35 p.c stake by Chevron Cyprus Ltd. Shell PLC’s BG Cyprus Ltd additionally holds 35 p.c. NewMed Power has the remaining 30 p.c.
To contact the writer, e-mail jov.onsat@rigzone.com
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