All signatures secured for Aphrodite gas sales MoU with Egypt

All signatures have been obtained for the memorandum of understanding (MoU) covering the sale of all recoverable natural gas from Cyprus’ Aphrodite field to the Egyptian Natural Gas Holding Company (EGAS), NewMed Energy Management Ltd announced on Wednesday, The Cyprus Mail reported. 

In a statement filed with the Tel Aviv Stock Exchange and addressed to the Israel Securities Authority, NewMed said the MoU was signed on July 22 by the Aphrodite field partners, the Cyprus Hydrocarbons Company and EGAS.

The company said the agreement covers the sale of all quantities of natural gas that can be produced from the Aphrodite field, located in Block 12 of Cyprus’ exclusive economic zone.

It added that the parties expect to complete, in the coming weeks, the signing of the Host Government Agreement (HGA) with the Egyptian government. The agreement concerns the development of offshore infrastructure to transport natural gas from the Aphrodite field to Egypt.

According to NewMed, the parties to the memorandum are also negotiating a binding gas sales agreement for the delivery of natural gas from Aphrodite to EGAS.

The company said the current ownership structure of the Aphrodite field remains unchanged, with Chevron Cyprus Limited holding 35 per cent, BG Cyprus Limited 35 per cent and NewMed Energy 30 per cent.

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All signatures secured for Aphrodite gas sales MoU with Egypt

cover All signatures secured for Aphrodite gas sales MoU with Egypt

Cyprus News

Wednesday 22 July | 17:40

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By Eleni Panayiotou

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All signatures have been obtained for the memorandum of understanding (MoU) covering the sale of all recoverable natural gas from Cyprus’ Aphrodite field to the Egyptian Natural Gas Holding Company (EGAS), NewMed Energy Management Ltd announced on Wednesday.

In a statement filed with the Tel Aviv Stock Exchange and addressed to the Israel Securities Authority, NewMed said the MoU was signed on July 22 by the Aphrodite field partners, the Cyprus Hydrocarbons Company and EGAS.

The company said the agreement covers the sale of all quantities of natural gas that can be produced from the Aphrodite field, located in Block 12 of Cyprus’ exclusive economic zone.

It added that the parties expect to complete, in the coming weeks, the signing of the Host Government Agreement (HGA) with the Egyptian government. The agreement concerns the development of offshore infrastructure to transport natural gas from the Aphrodite field to Egypt.

According to NewMed, the parties to the memorandum are also negotiating a binding gas sales agreement for the delivery of natural gas from Aphrodite to EGAS.

The company said the current ownership structure of the Aphrodite field remains unchanged, with Chevron Cyprus Limited holding 35 per cent, BG Cyprus Limited 35 per cent and NewMed Energy 30 per cent.

A landmark agreement for Egypt to purchase all of Cyprus’ Aphrodite gas output has given new momentum to Cyprus’ hydrocarbons strategy. The deal will see Egypt buy the full production of the Aphrodite field once extraction begins, under a long-term arrangement expected to run for at least 15 years. 

As Energy Minister Michael Damianos told the Cyprus Mail, the agreement represents more than a commercial step, “it’s a milestone,” he said, adding that “It means that we will be proceeding by January, with a final investment decision in 2027 which means first gas from Aphrodite around 2031.”