Chevron Cyprus Ltd. can continue discussions with the Government of Cyprus regarding potential development of the Aphrodite reservoir in early September, partner NewMed Energy Management Ltd. said in a release Aug. 27.
The news comes following rejection of Chevron’s updated plan for development of the project, in Block 12 in the EEZ of the Republic of Cyprus, NewMed said.
The updated plan—submitted to the Ministry of Energy, Commerce, and Industry in June—envisioned production and processing of natural gas from Aphrodite through a new subsea pipeline with connection to existing offshore and onshore infrastructure in Egypt, without the construction of a floating production and processing vessel (FPP) within the area of the reservoir, NewMed said.
The Cypriot government said the updated plan would increase the technical and commercial complexity of the project and is not expected to produce the advantages put forward in the report issued May 31.
The Aphrodite partners intend to consider the implications of the government’s decision and prepare for continued discussions with government representatives, NewMed said.
In November 2019, the Government of Cyprus granted the partners in Block 12 a production license for 25 years, with an option to extend the term by another 10 years, together with the approval of an outline for development of the reservoir (OGJ Online, July 21, 2022).
Days prior to the NewMed release, Cyprus Minister of Energy, Trade, and Industry, George Papanastasiou, in an address to the 21st World Congress of Diaspora Cypriots, said the ministry was “carefully studying the consortium's proposal and we will soon proceed with the necessary consultations, if necessary.”
Papanastasiou confirmed drilling of the second appraisal well at Aphrodite, the A3 assessment well, was completed in July.
“We have known up to now of confirmed natural gas quantities at Aphrodite of 4.5 [tcf] and the indications we have from the new appraisal drilling, carried out, this time, in the center of the field, are quite encouraging,” he said.
Chevron Cyprus is operator at the Aphrodite reservoir (35%) with partners BG Cyprus Ltd. (35%) and NewMed Energy Management Ltd. (30%).
