Cyprus OKs Aphrodite development plan. Grants exploitation license

Cyprus has approved the development plan and granted an exploitation license for the Aphrodite offshore gas field to a Noble Energy-led consortium. First gas is expected to start flowing in 2025.

Noble Energy operates the offshore Block 12 containing the Aphrodite discovery with a 35 percent stake. Shell owns 35%, and Delek owns 30%.

Aphrodite is a gas discovery made by Noble energy offshore Cyprus in 2011. The field, located approximately 170 kilometers south of Limassol, was declared commercial in 2015.

Delek on Thursday said the government had given the partners the exploitation license, and approved the development and production plan for the Aphrodite field.

The development plan envisions deployment of a newbuild floating production facility at the Aphrodite reservoir, with an estimated maximum production capacity of approx. 800 MMCF per day, through 5 production wells at the initial stage, and export of natural gas to the Egyptian market.

The estimated cost of the development, excluding the cost of construction of the pipelines to the target markets, is estimated at around $2.5-3.5 billion.

The final formulation of the Development Plan and the Final Investment Decision for development of the Aphrodite reservoir are subject to the drilling of another appraisal/development well and to the FEED, commercial arrangements for the development of the pipelines for export, the signing of agreements for the supply of natural gas, financing arrangements, and other regulatory approvals.

According to Delek, subject to fulfillment of all of the conditions the start of the supply of natural gas from the Aphrodite field may occur during 2025.

Cyprus last year signed an intergovernmental agreement with Egypt for the construction of a subsea natural gas pipeline which will carry gas from the Aphrodite offshore field to Egypt. The pipeline is intended to transport Cypriot natural gas to Egypt for re-export to Europe in the form of liquified natural gas (LNG).