Chevron Cyprus and its partners BG Cyprus (Shell) and NewMed Energy have edged closer to a binding agreement to sell gas to Egypt from the Aphrodite field in Block 12, in the Eastern Mediterranean’s Cyprus offshore acreage.

NewMed Energy said the partners had completed the signing process on a memorandum of understanding for the gas sale, describing it as another important milestone for the project. A host government agreement with Egypt is expected to be finalised in the coming weeks, while talks continue toward a binding gas sale and purchase agreement with the Egyptian Natural Gas Holding Company (EGAS).

NewMed said the commercial, regulatory and infrastructure framework needed for development was steadily taking shape, bringing the project closer to a final investment decision and reinforcing the Eastern Mediterranean’s role as a reliable regional energy supplier.

Aphrodite envisions gas production from four wells connected to a floating production unit with a maximum capacity of around 800 million cubic feet per day, sited in waters roughly 160 kilometres south of Limassol and 1,700 metres deep. The field was discovered in September 2011, with a follow-up appraisal well in 2013 confirming about 98 billion cubic metres of contingent resource and potential for a further 26 billion cubic metres.

Source: offshore-energy.biz