Cyprus and Egypt sign milestone agreement and MoU on energy

An Agreement and Memorandum of Understanding concerning the EEZ of the Republic of Cyprus and characterised as milestones for the exploitation of the deposits and the further development of cooperation between Cyprus and Egypt, have been signed in Cairo, in the presence of the Presidents of the two countries.

The new important agreements signed in Cairo, both at the level of the Memorandum of Understanding for the commercialisation of the 'Aphrodite' field and at the level of the Host Country Agreement for the development of Block 6 of the Cypriot EEZ, constitute a key step for the energy planning of the Republic of Cyprus and highlight the strategic role of Cyprus in the hydrocarbons sector.

The signing ceremony of the Agreement and the Memorandum, in the presence of the President of the Republic, Nikos Christodoulides, and the President of Egypt, Abdel Fattah el-Sisi, took place on the sidelines of the international exhibition EGYPES 2025, with the participation of companies operating in the Cypriot EEZ.

Specifically, a Memorandum of Understanding was signed between the Republic of Cyprus, Egypt and the licensees (Chevron Cyprus Limited, NewMed EnergyLP, BG Cyprus Limited) for the development of the 'Aphrodite' natural gas field. The Memorandum establishes the framework for the effective commercialisation of the natural gas that will come from the field.

Subsequently, a Host Government Agreement was signed for the development of hydrocarbons in Block 6 of the EEZ of the Republic of Cyprus, which defines the framework within which the licensed consortium (ENI/TOTAL), as well as Egypt as the Host Government, will work together for the commercialisation of the Natural Gas deposits discovered within the block (Kronos, Zeus, Calypso).

The essence of these agreements is not limited only to promoting the exploitation of deposits, but also broadens the prospects for energy cooperation with Egypt, while contributing to regional stability and strengthening our country's geopolitical position in the Eastern Mediterranean.

Overall, these two agreements signal the determination of the Republic of Cyprus to promote the sustainable exploitation of its natural resources, with the participation of renowned international energy partners, to strengthen its role as an energy hub in the Eastern Mediterranean and to ensure the maximum possible benefit for the Cypriot citizen, with the aim of achieving more competitive electricity prices and safeguarding the energy security of our country.

Also read: Christodoulides' visit to Cairo strengthens cooperation in tourism, trade, investments

(Sources: InBusinessNews)