Partners of the consortium for the "Aphrodite" gas field in block 12 of the Cypriot Exclusive Economic Zone have announced their intention to submit an updated development plan to the Cypriot government for approval. This decision follows a breach of contract notice issued by the Cypriot Minister of Energy. The updated plan will be based on the previous development and production plan, which had been previously approved by the government.
NewMed Energy, one of the partners in the gas field consortium, released a statement on Monday through the Tel Aviv Stock Exchange. The statement indicated that Chevron, the gas field’s operator, received the breach notice from the Cypriot Minister of Energy on Sunday. The notice specifies that the partners in the Aphrodite Reservoir have three months to address the breach related to their failure to meet a milestone. If the breach is not remedied within this period, the Cypriot government will have the right to terminate the Production Sharing Contract.
The milestone in question pertains to the performance of the Front-End Engineering Design (FEED), as outlined in the Production Sharing Contract. NewMed Energy added that the partners intend to submit the updated development plan for the Cypriot government’s approval in the coming days.
The partnership structure of the Aphrodite Reservoir is as follows: Chevron Cyprus Limited (35%, Operator), BG Cyprus Limited (Shell) (35%), and NewMed Energy (30%).
On April 30, Cypriot Energy Minister George Papanastasiou sent a letter to Chevron stating that the company’s proposal for an "optimized development plan" for the gas field was unacceptable. He requested that the partners promptly confirm in writing their unconditional consent to commence the FEED within six months.
Discussions regarding the development of Aphrodite, which is believed to contain up to 4.5 trillion cubic feet of natural gas, began in August 2023. The government had rejected a revised development plan submitted by Chevron, insisting that the gas field's development should proceed according to the original plan submitted by Noble Energy (the previous operator) in 2019.
Government sources told the Cyprus News Agency (CNA) that the Ministry’s actions are in line with the contract’s provisions. The government’s primary concern is to implement its energy program within the framework of the contracts signed by the Republic. The same sources emphasized that the Republic has repeatedly urged the gas field consortium to implement the development plan agreed upon in 2019.
Follow the latest news on Google News
