Nicosia, Cyprus. All signatures have been obtained for a memorandum of understanding covering the sale of all recoverable natural gas from Cyprus’ Aphrodite field to the Egyptian Natural Gas Holding Company (EGAS), NewMed Energy Management Ltd said.
The agreement was signed on July 22 by the Aphrodite field partners, the Cyprus Hydrocarbons Company and EGAS, according to a NewMed filing with the Tel Aviv Stock Exchange addressed to the Israel Securities Authority.
Gas sales and infrastructure
The memorandum covers all quantities of natural gas that can be produced from the Aphrodite field, which is located in Block 12 of Cyprus’ exclusive economic zone.
The parties expect to sign a Host Government Agreement with the Egyptian government in the coming weeks. The agreement concerns the development of offshore infrastructure to transport gas from Aphrodite to Egypt.
The memorandum parties are also negotiating a binding gas sales agreement for deliveries from the field to EGAS.
Field ownership and timeline
The Aphrodite field’s ownership structure remains unchanged, with Chevron Cyprus Limited holding 35 per cent, BG Cyprus Limited holding 35 per cent and NewMed Energy holding 30 per cent.
Energy Minister Michael Damianos said the agreement would support progress toward a final investment decision in 2027, with first gas from Aphrodite expected around 2031. He said the long-term arrangement for Egypt to purchase the field’s full production is expected to run for at least 15 years.
