Cyprus speeds up gas field development
The consortium licensed for Cyprus’ “Aphrodite” gas field will update the development and production plan of the field by March 31, as announced by the minister of Energy, Commerce and Industry, George Papanastasiou. He pointed out that a floating production unit (FPU) above the gas field would be an essential plan of the new agreement.
Speaking before the Parliamentary Committee on Energy, Papanastasiou revealed that recent discussions led to an arrangement with the consortium.
“At this moment, the discussion revolves around the necessity of the floating production unit (FPU) and considering the significant changes in the Eastern Mediterranean energy landscape since 2019, both geopolitically and in terms of energy, we thought it might be appropriate to accept an update of the specific plan,” he said.
He clarified that the term “update” implies making the plan more functional within the current energy environment of the Eastern Mediterranean and the Cypriot exclusive economic zone. The Aphrodite consortium comprises Chevron Corp with 35% (as the operator), BG Cyprus (Shell) and Newmed with 30%.
Papanastasiou expressed the belief that by March 31, the consortium could bring an updated plan, including the FPU, based on the 2019 development plan. He said that the response from the consortium is now awaited.
The minister reminded that the initial agreement in 2019 for the Aphrodite field was modified by the consortium on May 31, 2023, excluding the floating unit above the field, opting for a 406-kilometer pipeline to transport gas to Shell’s infrastructure in Egypt. The Republic of Cyprus rejected the revised plan. Papanastasiou emphasized the potential risks and uncertainties it posed to the economic and recovery aspects of natural gas quantities for Cyprus. Concerns included a potential reduction in gas flow and the risk of water entering the pipeline. Regarding the consortium’s request for a March 31 deadline, Papanastasiou said that any delay for the optimization and service of the interests of Cyprus would be insignificant.
He also highlighted positive developments in the southwestern cluster of Cypriot EEZ gas fields, including the “Glafkos,” “Zeus” and “Kronos” reserves. He mentioned ongoing progress with Kronos 2, with results expected by end-January.
