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)