Chevron’s Cypriot gas project edges closer toward binding supply deal with Egypt

July 22, 2026, by Melisa Cavcic

Chevron Cyprus, a subsidiary of the U.S.-headquartered oil major Chevron, and its partners, BG Cyprus (Shell) and NewMed Energy, have made inroads in securing a binding agreement for the sale of gas to Egypt from an offshore gas field reservoir in Block 12, located in the Eastern Basin of the Mediterranean Sea.

Man with a hardhat with words "Chevron" on it with an offshore rig in the background — Illustration; Source: Chevron

While reporting what it deems as “another important step forward” for the Aphrodite gas field development, NewMed explained that the partnership completed the signing process after initiating a memorandum of understanding (MoU) for the sale of natural gas from the reservoir to Egypt, marking another important milestone in advancing the project.

The host government agreement (HGA) with the Egyptian government is expected to be finalized in the coming weeks, while negotiations continue toward the execution of the binding gas sale and purchase agreement (GSPA) with the Egyptian Natural Gas Holding Company (EGAS).

“Step by step, the commercial, regulatory and infrastructure framework required for development is taking shape, bringing the project closer to a final investment decision (FID) and reinforcing the Eastern Mediterranean’s role as an important source of reliable energy supply through regional cooperation,” emphasized NewMed Energy.

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The plan is to develop a system offshore Egypt for gas transmission to EGAS. Located in the area of Block 12 in Cyprus, the Aphrodite project envisions the production and processing of natural gas from the field through four production wells connected to a floating production unit (FPU) positioned over the field.

This FPU will have a nominal maximum production capacity of around 800 million cubic feet per day. Situated 160 kilometers south of Limassol and 30 kilometers northwest of Leviathan, the field lies in an area where the sea depth is 1,700 meters.

Aphrodite was discovered with the A-1 well in September 2011 and was followed by the A-2 appraisal well, drilled in 2013, which confirmed approximately 98 billion cubic meters (bcm) of contingent resource with a potential for an additional 26 bcm of prospective resources.