Cypriot Minister of Energy, Commerce, and Industry George Papanastasiou has said that undoubtedly, 2023 is a milestone year for Cyprus’ "Aphrodite" gas field, as the licensee will have to make significant decisions regarding its development, according to their contractual obligations.

He was speaking at a conference organised by the Energy Committee of the Cyprus Academy of Sciences, Letters and Arts, focusing on natural gas and renewable energy sources (RES).

Papanastasiou mentioned that on Wednesday, May 31st, the consortium of Chevron, Shell, and NewMed Energy submitted the revised Development and Production Plan for the "Aphrodite" gas field to the Ministry of Energy. He said that the purpose of the revision, as emphasised by the consortium, was to optimise the development plan by utilising synergies with other facilities located in Egypt. This revision process, he added, began after Chevron acquired Noble Energy.

"The Ministry of Energy will carefully study the consortium's proposal for discussion and consultations, aiming to reach a final and mutually acceptable text. In any case, the final approval will be issued by the Republic of Cyprus," he noted.

He added that in the meantime, the consortium has initiated the appraisal drilling in the "Aphrodite" gas field, which was expected to be completed within the summer. He added that the drilling was anticipated to provide significant information about the field that will aid, among other things, in shaping the development and production plan.

Increased energy prices open a window of opportunity

At the same time, the Minister stated that the unprecedented surge in energy prices, particularly in Europe, creates a favourable environment for the development of natural gas fields discovered in the Cypriot Exclusive Economic Zone (EEZ).

"The window of opportunity that has opened will not remain open for long, and for this reason, we must act swiftly and decisively in collaboration with the companies operating within our EEZ, implementing our research program and advancing the development of existing and future gas discoveries," he noted.

Regarding upcoming drilling activities, he mentioned that the joint venture of Eni and TotalEnergies intends to conduct an appraisal drilling in the "Kronos" discovery in late 2023 or early 2024.

As for the remaining licensed blocks, the Minister highlighted that license holders within the Cypriot EEZ are progressing with their research programs, which are expected to culminate in the next 2-3 years. He expressed hope that these efforts would lead to new discoveries, thus enhancing Cyprus’ energy potential.

The Minister expects companies to submit specific proposals for infrastructure  

The Minister explained the alternative proposal that the government has presented to industry companies for the importation of natural gas to Cyprus for electricity generation purposes through a pipeline. As he said, natural gas would come from fields in the Eastern Mediterranean, possibly including the Cypriot fields. This gas, he added, would be secured at prices prevailing in the region and would be used both for electricity generation and for liquefaction and export to Europe and elsewhere.

He pointed out that the two main goals of the proposed infrastructure was to reduce the cost of electricity in Cyprus and the country's energy security.

"We are convinced that these infrastructures will incentivise gas producers in the Eastern Mediterranean to utilise them for transportation to Cyprus, where it will be liquefied for exports as LNG, to Europe and global markets," he said.

He also mentioned the ongoing discussions with Israel on the matter and the workshop held in Nicosia last Monday and Tuesday to present this prospect to the companies.

"I must say that the initial response from participants was positive, and we expect them to return soon with specific thoughts and proposals, as well as an official expression of interest in participating in such a project," he said.

He further noted that natural gas will play a significant role in the green transition as a bridge fuel leading to a green and circular economy.