Israel-based NewMed Energy and its partners Chevron and Shell have submitted an updated development plan for the Aphrodite natural gas field to the Cypriot government.
The revised plan is estimated to cost around $4bn.
The offshore gas field, located in Block 12 of Cyprus’ Exclusive Economic Zone (EEZ), builds upon a previously approved plan with several modifications.
Chevron, which holds a 35% interest, is the operator of the Aphrodite field. Shell also owns a 35% stake, while NewMed Energy, previously known as Delek Drilling, holds the remaining 30% share.
The updated plan outlines the initial production and processing of natural gas through four production wells, which will be linked to a floating production unit (FPU). This unit, positioned above the field, will have a nominal maximum production capacity of approximately 800 million cubic feet per day (MMCF).
Natural gas will be transported from the FPU via a pipeline to the Egyptian transmission system. The updated plan increases the number of production wells and opts for an FPU rather than fixed or onshore facilities. It also includes a direct pipeline export route to Egypt.
These updates have been proposed by Chevron prior to the completion of technical-economic feasibility studies and the front-end engineering design (FEED).
NewMed Energy stated: “As of the date of this report, there is no certainty as to whether and when, if at all, the Government of Cyprus will approve the Updated Development and Production Plan, and whether said approval will be contingent on any conditions.”
“Furthermore, in addition to said approval from the Government of Cyprus, final investment decision (FID) for implementing the Updated Development and Production Plan is subject, inter alia, to FEED execution, commercial arrangements associated with the to-be-installed export pipeline, the signing of agreements for the supply of natural gas and fulfilment of the closing conditions in such agreements, regulatory approvals and financing arrangements.”
The Aphrodite field, discovered by the A-1 well in September 2011, is situated 160km south of Limassol and 30km northwest of the Leviathan field. It is located in waters with a depth of 1,700m.
The A-2 appraisal well drilled in 2013 confirmed approximately 98 billion cubic metres of contingent resource, with an additional potential of 26 billion cubic metres of prospective resources.
In November 2019, the Cypriot government granted a production licence for 25 years to the Block 12 partners. The government has also granted an option to extend the term by an additional 10 years.
