Chevron and its partners have approved a $105.7 million investment to begin the FEED phase for Cyprus’s deepwater Aphrodite gas field, advancing detailed engineering and infrastructure planning. This marks a key step in moving the project from appraisal into full design and feasibility.
Chevron Corporation, along with its partners, has officially committed to initiating the front-end engineering and design (FEED) phase for the development of the deepwater Aphrodite gas field, located off the southern coast of Cyprus. The investment, totaling approximately $105.7 million, is aimed at advancing engineering studies for the offshore production facilities and the necessary infrastructure to transport the gas to export points. This marks a significant milestone for the project, signaling its progression from appraisal and planning into more detailed design and feasibility analysis.
NewMed Energy, a key partner in the consortium, noted that the FEED program would focus on detailed engineering of the offshore production system, subsea pipelines, and associated infrastructure required to deliver gas efficiently to international markets. The announcement comes as diplomatic and commercial discussions continue between Cyprus and Egypt regarding the export of gas from the Aphrodite reservoir. Officials from the Government of Cyprus and the Cyprus Hydrocarbons Company (CHC) are engaged in talks with representatives from the Government of Egypt and the Egyptian Natural Gas Holding Company (EGAS), exploring potential agreements that would facilitate the export of Cypriot natural gas to Egypt. These discussions aim to culminate in binding contracts that would underpin long-term energy cooperation between the two nations.
The Aphrodite gas field was initially discovered by Noble Energy in 2011, following the drilling of the A-1 exploration well in Block B12. The well was drilled in deepwater conditions, approximately 1,700 meters below the sea surface, located roughly 160 kilometers south of Limassol and about 30 kilometers northwest of Israel’s Leviathan field. Subsequent appraisal drilling, including the A-2 well completed in 2013, allowed the partners to estimate a contingent resource of around 98 billion cubic meters (bcm) of natural gas, with a possible additional upside of 26 bcm, highlighting the field’s considerable potential.
In November 2019, the Government of Cyprus issued a 25-year production license for Block B12, the block containing the Aphrodite field. The license also includes an option for a ten-year extension, providing the partners with a long-term framework to plan, develop, and operate the field. This regulatory support offers a stable and predictable environment, enhancing the investment case for the participating companies.
The partnership structure for the project includes Chevron Cyprus, holding a 35% stake; BG Cyprus, also with a 35% interest; and NewMed Energy, which holds a 30% share. Together, these companies bring a combination of technical expertise, regional experience, and financial strength to ensure the successful development of one of the eastern Mediterranean’s most significant gas assets. As FEED activities advance, the consortium aims to finalize design solutions, optimize production facilities, and prepare for potential downstream agreements that will maximize the value of the Aphrodite field for both investors and regional energy markets.
