The Chevron-led consortium responsible for the Aphrodite gas field off the coast of Cyprus is set to present an updated development plan.
This move follows Cyprus' issuance of a three-month deadline for the consortium to adhere to the agreed terms.
Discovered in 2011, the Aphrodite gas field is Cyprus' first offshore find and is estimated to contain around 3.5 trillion cubic feet of gas.
According to Reuters, the field's development has been under discussion since Chevron, which acquired licence-holder Noble in 2020, sought to revise a 2019 development plan previously agreed upon with Cyprus.
In a stock filing, NewMed Energy, a partner in the consortium, revealed plans to submit an updated proposal for Aphrodite's development soon.
The urgency follows a "notice of breach" from Cyprus's Minister of Energy, dated 25 August, mandating the commencement of the front-end engineering design (FEED) process within three months.
Should the consortium fail to initiate the FEED, which is crucial for assessing project costs and engineering details, the Cypriot Government may terminate the contract, as per NewMed's disclosure.
“In this context it is noted that the partners in the Aphrodite Reservoir intend to submit, in the coming days, for the Cypriot government’s approval, an updated plan for development of the reservoir,” NewMed Energy’s announcement read.
The Aphrodite field's stakeholders include Chevron Cyprus with a 35% share and the role of operator; BG Cyprus, supported by Shell, also holding 35%; and NewMed Energy with a 30% stake.
Cyprus has discovered additional gas reserves in four other areas, although none have been exploited to date.
In a statement, Cyprus Energy Ministry’s representative said: “The primary concern of the government is the implementation of Cyprus' energy programme within the framework set by the contract signed by the parties.
“The notification provided to the consortium was in accordance with the provisions of the contract. Based on the notification the consortium has three months to remedy.”
Earlier this month, energy giants BP and ADNOC reportedly entered talks with the Cypriot Energy Ministry, exploring potential investments in the country's natural gas sector.
