Energy Minister calls on Chevron to 'honour its signature' on Aphrodite deal

Minister of Energy, Commerce and Industry, George Papanastasiou has called on Chevron, the company responsible for the development of the 'Aphrodite' gas field to honour the agreement it signed.

The call comes ahead of a meeting between Clay Neff, President of Chevron Middle East, Africa, South America Exploration and Production Company and Cyprus President Nikos Christodoulides and the conclusion of the dispute resolution period regarding the development plan of the field.

Speaking before the parliamentary committee on Finance, where he presented his ministry's budget for 2024, Papanastasiou emphasised that the government insists that "the parties honour their signature," referring to the original plan of the previous operator, Noble Energy. This plan concerns the construction of the Floating Production Unit (FPU) over the field. The FPU will allow for greater gas recovery, thus maximising revenue for the Republic of Cyprus.

"Our predictions were that in the first years of production, there would be gas, but in the following five years, which would constitute the revenues for the Republic of Cyprus, there would be no gas. Chevron's proposal leaves us in serious uncertainty. The field will be developed on the basis of Chevron's interests during the first period, and during the second period, there will be no gas," he explained. The FPU, as he further clarified, processes the gas by removing petroleum derivatives, water, and particles.

As noted, the initial proposal of the development plan submitted in 2019 was "very correct, but it must be honoured by all parties".

He pointed out that the government understands the company, which is directing capital investments towards the major Israeli fields, Tamar and Leviathan. "But we also understand the Republic of Cyprus. Cyprus has given a lot and received nothing. That's why we insist that the parties honour their signature," he underlined.

Furthermore, he noted that the "Aphrodite" field is an asset without risks. "It is a developmental field, ready for sale. That's why we insist on infrastructure," he emphasised.

(Source: CNA)