The formulation of an intergovernmental agreement between Cyprus and Israel for the management of the Aphrodite-Ishai gas field is in the final stages, according to Energy Minister George Papanastasiou. This announcement came during the 13th Energy Symposium held in Nicosia.
Papanastasiou revealed that the agreement’s text is nearly complete and that the Cypriot side has sent the final draft, incorporating their comments, to Tel Aviv last week. He expressed optimism that both energy ministers would sign the agreement by the end of the year, a goal they have been working towards since their meeting in September.
Gas field: Details of the Agreement
The intergovernmental agreement aims to establish management protocols for the small section of the Aphrodite gas field that extends into Israel’s Ishai block. It will outline mechanisms for compensating the owners on the Israeli side, ensuring both nations can benefit from the natural gas resources located within their exclusive economic zones (EEZ).
Recent Developments in Energy Collaboration
Earlier this year, a significant step was taken when Chevron, Egypt, and Cyprus signed a non-binding Memorandum of Understanding. This agreement focused on the export of gas from block 12 of the Aphrodite field, which contains approximately 3.5 trillion cubic feet (tcf) of gas, to Egypt for liquefaction at the Damietta plant.
The collaboration with Chevron has also led to the finalisation of negotiations regarding a development plan for the gas field, estimated to cost around $4 billion. This plan anticipates the production of 800 million cubic feet per day through four wells, using a floating production unit (FPU) to facilitate gas exports to Egypt. If all goes according to plan, gas exports could begin in 2031, with Cyprus expecting to see income from the project by 2034-2035.
New Discoveries and Future Prospects
President Nikos Christodoulides, also addressing the symposium, highlighted the significant progress made with the discovery of gas in the Pegasus field located in block 10 of Cyprus’ EEZ. He mentioned that gas from the Kronos field in block 6 is projected to be available for export to Europe as early as 2027.
Moreover, Christodoulides noted the increasing interest from energy giants in securing additional plots within Cyprus’ EEZ. This interest is expected to lead to further discussions and decisions regarding resource utilisation.
Strengthening Regional Cooperation
Both Papanastasiou and Christodoulides underscored that these developments are not only vital for energy production but also enhance Cyprus’ international standing. The ability to attract foreign investment and strengthen regional cooperation in energy matters is seen as crucial for the nation’s future.
