The Aphrodite gas project offshore Cyprus has received a major boost with the approval of a revised development and production plan (DPP) and production sharing contract (PSC) milestones. This approval paves the way for front-end engineering and design (FEED) work, bringing the project closer to a final investment decision (FID).
Cyprus’ Minister of Energy, Commerce and Industry, George Papanastasiou, welcomed the approval, stating, “The Republic of Cyprus has approved today the development and production plan of the Aphrodite field, following the official submission by the Aphrodite consortium, Chevron Cyprus Limited, BG Cyprus Limited (Shell) and NewMed Energy LP. We look forward to the expeditious development of the field via Egypt’s facilities, a tangible step towards establishing the role that Cyprus envisions in the energy sector of the region, for the benefit of the country and its people.”
The approved DPP outlines a plan involving a floating production unit (FPU) for gas processing within the Cypriot Exclusive Economic Zone (EEZ) and a pipeline to export gas to Egypt.
Frank Cassulo, Vice President, Chevron International Exploration & Production, emphasized the importance of the development: “We welcome this major development and our productive engagements with the Cypriot government. Chevron values its partnership with the Republic of Cyprus and we believe it is important that Aphrodite is developed for the benefit of the Republic of Cyprus, and the Eastern Mediterranean region. This is also aligned with our strategy to deliver affordable, reliable, and ever-cleaner energy.”
The Aphrodite gas field, discovered in 2011 and appraised in 2013, contains approximately 98 billion cubic meters (bcm) of contingent resources, with potential for an additional 26 bcm of prospective resources. Located 160 km south of Limassol and 30 km northwest of Israel’s Leviathan field, the reservoir sits at a depth of 1,700 meters.
Following optimization work in 2022, Chevron announced plans to invest around $192 million in a new well and development costs. However, an updated development plan submitted in May 2023 was not approved. After further discussions, Chevron submitted a revised plan on August 30, 2024, which has now received the green light. The estimated cost of the revised plan is approximately $4 billion before FEED and technical-economic feasibility studies.