NICOSIA, Feb 14 (Reuters) - Cyprus and a Chevron-led CVX.N consortium have agreed on an updated development plan over an offshore gas field off Cyprus, a joint statement by the two sides said on Friday.
There had been protracted talks on the future development of the Aphrodite gas field south-east of Cyprus since Chevron attempted to introduce changes to a 2019 field development plan. That plan had been agreed between Cyprus and Noble, the former licence-holder and an independent energy operator Chevron acquired in 2020.
The approved Development and Production Plan $(DPP.UK)$ announced on Friday includes a floating production unit, also known as a gas processing facility, and a pipeline for exporting gas to Egypt.
"We look forward to the expeditious development of the field via Egypt's facilities, a tangible step towards establishing the role that Cyprus envisions in the energy sector of the region, for the benefit of the country and its people," the joint statement quoted Cypriot Energy Minister George Papanastasiou as saying.
Frank Cassulo, Vice President at Chevron International Exploration and Production said it was a "major development".
"Chevron values its partnership with the Republic of Cyprus and we believe it is important that Aphrodite is developed for the benefit of the Republic of Cyprus, and the Eastern Mediterranean region.
"This is also aligned with our strategy to deliver affordable, reliable, and ever-cleaner energy."
The approval of the modifications to the DPP and the Production Sharing Contract milestones aim to advance technical and engineering work in relation to Front End Engineering and Design and towards a Final Investment Decision for Aphrodite, the two parties said.
Aphrodite was discovered in 2011 and is Cyprus's first offshore discovery, holding an estimated 3.5 trillion cubic feet (tcf) of gas. Cyprus has since discovered gas deposits in another four areas, all untapped to date.
Chevron is a partner in the field with Israel's NewMed Energy NWNDpTA and BG Cyprus Ltd., part of Shell SHEL.L.
(Writing by Michele Kambas)
((michele.kambas@thomsonreuters.com;))
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