The government’s discussions with Chevron are progressing well, stated President Christodoulides yesterday, expressing hope for announcements soon.
Speaking at the 14th Economic Congress of Nicosia, he also mentioned that in the coming days, the CEO of ENI, Claudio Descalzi, is expected in Cyprus to present the development plan for the licensed fields.
A priority for ENI, in collaboration with Total, is the exploitation of the Kronos, Zeus, and Calypso fields in Block 6, estimated to hold up to 4.5 trillion cubic feet of natural gas (approximately equivalent to Aphrodite).
Information from Phileleftheros suggests that the President’s remarks about discussions with Chevron regarding the exploitation of the Aphrodite field being on the right track are directly related to a letter from the American company to the Ministry of Energy almost ten days ago.
In this letter, Chevron presents its positions for the update and optimisation of the Aphrodite development plan, as agreed upon in 2019.
Unofficial reports indicate that Chevron is “locking in” the use of a Floating Production Unit (FPU) in its letter, abandoning its initial intention to utilise a different extraction methodology for the reservoir.
However, Chevron’s new letter is being evaluated by the Hydrocarbons Service of the Ministry of Energy and by foreign state advisors before any further discussions with the American company.
nformation suggests that the company is setting certain economic conditions that are deemed to require evaluation.
The same reports mention an increasing likelihood of the FPU being utilised for synergies within the Cypriot Exclusive Economic Zone (EEZ), potentially even for the exploitation of the Kronos field. However, this would require time and money.
Exporting natural gas to Egypt remains the most accessible solution for all. Still, the country’s serious economic problems raise concerns.
The upcoming visit of ENI’s CEO and his discussions with President Christodoulides and the Energy Minister could very likely cover the possibility of collaboration with Chevron for gas extraction and transportation to a terminal in Egypt. The autonomous activity of the ENI – Total consortium remains on the table as well.
