Chevron’s plan for Aphrodite
Chevron and its partners, Shell and NewMed Energy, have put forward a new $4 billion plan to develop the Aphrodite gas field off Cyprus. The proposal comes after Cyprus warned it might revoke the license for the project due to delays.
The updated plan aims to address Cyprus’ concerns but comes with a significantly higher price tag compared to previous proposals.
Chevron’s latest plan includes building a floating production unit (FPU) directly over the gas field, which would extract up to 800 million cubic feet of gas per day through four wells. The gas would then be piped to Shell’s facilities in Egypt.
The new $4 billion cost is higher than earlier estimates. In 2019, Noble Energy, which was later acquired by Chevron, estimated development costs at $3.6 billion. Chevron’s proposals earlier this year were even lower, ranging from $2.6 billion to under $3.2 billion. However, Cyprus insisted on a plan more in line with the original 2019 proposal, which has led to the higher cost.
Nicosia has long pushed for a floating production facility to be built over the gas field. Chevron’s updated proposal meets this demand but compromises on the number of wells, proposing four instead of Noble’s five.
