Cyprus urges Chevron to honor agreement

Cypriot Energy Minister George Papanastasiou has issued a new message to Chevron, operator of the Aphrodite gas field, via Parliament ahead of the crucial meeting with Chevron’s Chairman Clay Neff. It comes as the deadline for resolving the dispute over the development plan of the field approaches.

During his address to the Parliamentary Committee on Finance, while presenting the 2024 budget of his ministry, Papanastasiou emphasized the government’s commitment to uphold the original agreement, urging all parties to honor their signatures. The original plan, proposed by the previous operator, Noble Energy, specifically outlined the construction of a floating gas production unit (FPU) above the field. This FPU is vital for maximizing gas recovery and subsequently increasing revenues for the Republic of Cyprus.

Papanastasiou explained that their projections anticipate gas production in the initial years, but the following five years, which represent significant revenue for the Republic of Cyprus, would see no gas extraction. Chevron’s alternative proposal introduces uncertainties, potentially favoring Chevron’s interests in the short term at the expense of gas production in the long run.