Insider Economy Contract would see $9.5b revenue over 18 years from Aphrodite

Contract would see $9.5b revenue over 18 years from Aphrodite

Cyprus should see a total net revenue of $9.5b from the sale of natural gas from the Aphrodite plot to Egypts’ Idku LNG terminal under an agreement between the Energy Ministry and the Noble-Shell-Delek consortium, Phileleftheros reported on Wednesday.

It said the calculations are based on projected average prices over a period of 18 years, beginning in 2024, it added.

The newspaper said that the state will receive an average of $525 m a year for each of the 18 years.

In the first years, and until capital investment made by the companies is paid off,  state revenue is estimated at between $200m and $250m.

Once the infrastructure is paid off, the lion’s share will go to the state which can anticipate revenue of some $750m a year, the newspaper said.

Details of the agreement between the government and the consortium were given to political party representatives by Energy Minister Yiorgos Lakkotrypis yesterday.

Under the new, renegotiated agreement, Cyprus will see increased revenue if a confirmatory drill shows that the Aphrodite plot has more than 4.1 trillion cubic metres of natural gas.

Developing the field is estimated to cost $3.5b during the first stage, and once part of the reserves have been exhausted, there will be additional drilling at a cost of an additional $2b approximately.

Operating costs are estimated at $2.6b.

Cyprus will have direct and indirect benefits from tax, jobs and multi-million euro sub-contracting contracts to Cypriot companies.

The first natural gas production from Aphrodite is due at the end of 2024 or early 2025.

The renegotiated agreement is due to be signed before the end of July.

Top Stories

One more tests positive to Coronavirus

One more person has tested positive for coronavirus after 942 tests, the Health Ministry said on Monday, raising the total in Cyprus to 1,022. The...

Britain set to ban Huawei from 5G, though timescale unclear

Prime Minister Boris Johnson is set to ban Huawei from Britain's 5G network in a landmark decision that will anger Beijing but win plaudits from President...

‘Views of the World’ animation festival returns to Salamiou

Countryside Animafest Cyprus, the island's official animation event that aims to showcase animation films from around the world has announced its 19th edition that...

MoH extends testing programme for employees in phase 2 and 3 of lockdown exit

The Health Ministry said on Monday it has extended to August 12 the programme to test a total of 10,000 employees who returned to...

Britain offers fast-track visas for foreign health workers

Britain's new immigration system will provide faster and cheaper visas for skilled health and social care workers, the government announced on Monday, setting out...


Halloumi cheese fingers

Ingredients Serves: 2 1/2 tablespoon olive oil 175g (6 oz) halloumi cheese, cut into sticks 1 dessertspoon lemon juice 1/4 teaspoon dried oregano freshly ground black pepper to taste Method Prep:5min ›...

Koupes (cracked wheat pies) with mushrooms

Ingredients: For the dough: 1½ cup bulgur wheat 2 cups water 1 tsp. salt For the filling: 250gr. mushrooms, finely chopped ½ cup of olive oil 2 big onions, coarsely chopped 1...

Fried zucchini balls with halloumi

Ingredients: 6 medium zucchinis (approximately 1kg) 1 small onion, grated 1 large halloumi (about 250gr.), grated ½ cup simple flour 2 tsps. fine lemon zest 2 big eggs 1 tbsp. fresh...

Rocket salad

Ingredients: 4 cups rocket leaves, rinsed and dried 1 cup cherry tomatoes 1 cup pomegranate seeds 1 red bell pepper ½ cup croutons 2-3 light cheese slices (grated) salt ½ of a...