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Renegotiations over the production sharing contract (PSC) for Cyprus’ 4.5tcf Aphrodite gas field began last summer between the Texas-based operator Noble Energy and Cypriot authorities. Terms are to be updated to include a greater linkage to the price of gas, and especially with more upside for the firm in periods of low prices ( MEES, 24 August 2018 ).
Aphrodite was the first field to be discovered offshore Cyprus, in December 2011 ( MEES, 12 December 2011 ), but despite initial optimism it has failed to ignite a wave of industry for Nicosia. Instead, development has been stymied by the field’s location – 160km offshore in 1,750ms of water, straddling the maritime border with Israel – and low demand in Cyprus’ small domestic market. The collapse in oil prices in mid-2014, squeezing oil firms’ budgets, didn’t help either. (CONTINUED - 883 WORDS)