CYPRUS CLOSER TO THE DEVELOPMENT OF ''APHRODITE'' - Filenews 12/4
Cyprus seems to be moving one step closer to the exploitation of the "Aphrodite" field, following the memorandum of understanding signed by NewMed Energy for the sale of natural gas to Egypt. According to the report, the deal concerns the entire amount of the field, i.e. about 100 billion cubic meters of natural gas, and is being promoted together with Shell and Chevron.
The natural gas from "Aphrodite" is planned to be transported to Egypt via a floating platform and pipeline that will end in the Nile Delta region. The duration of the agreement is set at 15 years, with the possibility of extension for another five years.
For Cyprus, this development is important because "Aphrodite" is the Cypriot deposit that is closest to commercial exploitation. If the project goes ahead, it will be an essential step for the country to start exporting natural gas and acquire a more active role in the energy cooperation of the Eastern Mediterranean.
Egypt is considered a key destination, as it is one of the largest gas markets in the region and has increased energy needs. According to the publication, this demand is also reinforced by the difficulties that have occurred in the past period in the region, such as the temporary closure of the Israeli Leviathan field for 32 days due to the war with Iran.
Despite the agreement, an important issue remains open. The "Aphrodite" reserve also partially extends to the Israeli EEZ, where it is known as "Yishai", and that is why negotiations between Cyprus and Israel continue to determine its boundaries and development.
Simply put, the main news is that there is an agreement to go the natural gas of "Aphrodite" to Egypt, but in order for the project to fully proceed, the next steps are still needed at the level of investment decision and interstate arrangements.
The Aphrodite field has about 100 billion cubic meters of natural gas, more than the "Karish" and "Tanin" fields, but less than the "Tamar" and "Leviathan" fields. NewMed owns 30% of the project, while Chevron and Shell each own 35%.
