Facebook Linked In Twitter

Zeta Emilianidou Outlines Measures To Support Employment, Workers And Vulnerable Groups

Cyprus Government: €700 Mn To Counteract Coronavirus Repercussions



Cyprus Sign Exploitation License with Aphrodite Consortium for Natural Gas Sales to Egypt

Cyprus Sign Exploitation License with Aphrodite Consortium for Natural Gas Sales to Egypt

Cyprus and the Aphrodite consortium on Thursday signed an exploitation license and a revised production sharing contract, aiming to start natural gas production in 2025, generating projected revenues of $9.3 billion for a period of eighteen years, the CNA reported.

The 25-year exploitation licence is the first of its kind signed with Cypriot EEZ licensees and it’s based on the final development and production plan of Aphrodite agreed between the Cypriot authorities and the consortium of Noble Energy, Shell and Delek Drilling.

On the basis of the plan, the natural gas from Aphrodite will be transferred via a subsea pipeline to Egypt’s Idku LNG plant from where it will liquified and exported to European and international markets, an option deemed as the optimum one by the Ministry of Energy.

Speaking to a press conference following the signing ceremony, Energy Minister George Lakkotrypis described today’s agreement “as another significant milestone in the Republic of Cyprus’ energy programme, which proceeds despite difficulties.”

“Our energy programme reaches its next phase completing the hydrocarbons chain, Cyprus from the phase of EEZ delimitation reached the phase of licensing, exploration and now exploitation,” he added.

The Cypriot Minister also said that Cyprus “will also become an alternative source of supply for the EU, making another step towards implementing the vision of the countries in the region for creation of the Eastern Mediterranean natural gas corridor.”

On his part, Keith Elliott, Noble Energy`s Senior Vice President, Offshore expressed satisfaction over the signing of the exploitation licence.

“It’s really a pleasure to be crossing this very significant milestone,” he said, adding that “today’s lays a pathway for the Aphrodite development.”

Under the new revised production sharing contract, the economic terms are adjusted featuring a mechanism R-factor that would render the project sustainable for in case of low oil price, while the Republic will be benefited in case of higher oil prices.

Lakkotrypis said that during the contract renegotiation, the consortium asserted that it could not proceed with development due to low oil market prices, while the contract had not effective control clauses.

In adjusting the contract, he added, Cyprus in return received binding contracts, milestones with strict terms in case of breach of contract, including contract termination.

The first milestone covers the appraisal well, while the Front Engineering and Design (FEED) is the second and the Final Investment Decision (FID) is the third milestone, Lakkotrypis added.

The consortium’s development and production plan provides for projected revenue for Cyprus amounting to $9.3 billion on the median and most plausible scenario for 18 years amounting to approximately $500 million per annum.

According to this scenario, the average oil price is set at $70 per barrel in 2022 with a 2% increase rate and calculated natural gas quantities of 4.1 tcf.

Lakkotrypis said that in all three scenarios with an oil price of $50, $70 and $80 per barrel respectively, Cyprus’s revenue share is over 50%.

The capital expenditure (CAPEX) for the first phase of development are estimated at €3 billion, with an additional €2 billion in the second phase with additional production drillings and €2 billion in operating expenditure.

Furthermore, the appraisal well which will also be a production well is expected to be carried out in 18 months.

Cyprus is expected to receive its first revenue in 2025. Lakkotrypis said Shell will be the buyer of Aphrodite’s natural gas.

He also added that the pipeline connecting the Aphrodite gas field with Idku LNG plant is not included in the Development Plan and will be discussed with the consortium.


Natasa Pilides: We Are Considering Appointing A Maritime Ambassador In Hong Kong

This year promises to be one of major change at the Deputy Ministry of Shipping, as major ...

Trade Deficit At €479.5 million For January 2020

In January 2020, based on data released by Cystat, total imports were €699.6 mn as ...

Konstantinos Petridis: Support Package To Ease Coronavirus Economic Impact To Be Announced Soon

A financial support package for the economy in order to address the consequences from ...



Minthis Restaurant Reopened To The Public

The Restaurant at Minthis reopened to the public from Monday, June 1. The restaurant is within the contemporary Clubhouse at the Aphrodite Hills resort, ...

SAP Business ByDesign: A Time-Tested Solution for Fast-Growing Businesses in Cyprus

A business does not have to be big, to be ‘smart’ - regardless of  size, type and sector, every business can utilize ‘smart’ ...

Consulco: Ranked as a Top Tier Performer in London Real Estate by Morgan Stanley

Following the recent assessment by Morgan Stanley Capital International, Consulco ranked 15th amongst the 160 competitors that specialise in retail ...

Insignia Launches First Ever Clean Payment Card

Perhaps the most unavoidable form of germ transmission occurs through the ordinary use of money and credit cards. Despite the increase in electronic ...

A New Global Methodology To Define Cities And Rural Areas

Have you ever asked yourself how Sustainable Development Goal indicators on sustainable cities and communities can be compared if countries across the world ...

Cyprus Government: €700 Mn To Counteract Coronavirus Repercussions

Cyprus announced a financial support package of € 700m, equivalent to 3% of the GDP which includes a series of measures, covering health, finance and ...

Zeta Emilianidou Outlines Measures To Support Employment, Workers And Vulnerable Groups

Measures to support employment, workers and vulnerable groups of the population  from the effects of the coronavirus protection measures, which are ...

High Potential Startups And Economic Resilience

Economic growth without innovation is hard to imagine. The ultimate source of productivity increases is innovation. About two-thirds of Europe's economic ...