Partners in the Aphrodite deepwater gas project have approved the budget for front-end engineering and design work, marking a critical step toward a final investment decision.

Project Approval and Budget

The ownership group—Chevron, Shell, and NewMed Energy—has approved the execution of the FEED work. A 2026 budget of $111.5 million for the Aphrodite development was previously approved, with $107.5 million allocated to this FEED phase, which has now received final partner approval.

Development Plan and Significance

The approved plan involves installing a floating production facility above the reservoir. Natural gas will be exported via a subsea pipeline to Egypt's gas transmission system. This development is seen as a significant step, with the gas expected to contribute meaningfully to Cyprus, Egypt, and the wider region.

Field Details and Ownership

The Aphrodite field is located in Block 12 of Cyprus' exclusive economic zone, about 160 kilometres south of Limassol. It holds an estimated 3.5 trillion cubic feet of gas and 8 million barrels of condensate in water depths of 1700 metres. Chevron and Shell each hold a 35% interest, with NewMed Energy holding the remaining 30%.

Project Scope and Commercial Agreements

The initial development will involve four subsea wells tied back to the floating facility, which is designed to handle up to approximately 800 million cubic feet of gas per day. A non-binding memorandum of understanding designates Egypt's state-owned Egyptian Natural Gas Holding Company as the sole buyer of the gas. Partners also have an option to purchase specific quantities of this gas as liquefied natural gas. Negotiations between the partners, the governments of Cyprus and Egypt, and the relevant state companies are ongoing to finalize binding agreements for gas export to Egypt.