Cyprus: Aphrodite Contract Agreed, 2020 FID?

Cyprus looks to be finally on the path to the realm of gas producers. Nicosia has agreed to sweeten terms in return for a guarantee from Noble, Delek and Shell to develop the 2011 Aphrodite discovery.

The Cyprus government and the partners at the country’s 4.5tcf Aphrodite gas field have agreed to the revision of the production sharing contract (PSC) after around a year of negotiating ( MEES, 26 April ).

With field development at a standstill since its 2011 discovery, mainly due to the high cost of developing the field almost 160km offshore and in 1,750ms water depth, Nicosia and operator US-based Noble Energy came to the table last year ( MEES, 29 June 2018 ). Noble (35%), and partners Israeli firm Delek (30%) and Anglo-Dutch major Shell (35%) requested that the PSC, the first signed by Cyprus be revised to reflect subsequent ‘R-factor’ contracts signed by Italian firm Eni, French major Total and US supermajor ExxonMobil.  (CONTINUED - 649 WORDS)