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In an article published in yesterday's Kathimerini, Yiannis Ioannou writes that Cyprus is grappling with significant challenges over the development of its Aphrodite gas field, a situation that's becoming more complicated by the day. This issue is in the spotlight due to a series of events and the broader regional instability affecting energy projects.
According to the article, in early August, representatives from British Petroleum (BP) and the UAE's Adnoc, two major players in the energy sector, visited Cyprus. They had previously shown interest in buying a big stake in NewMed Energy, a company that owns a part of the Aphrodite field. Their visit signaled their ongoing interest in the region’s energy market, which is currently under strain from regional conflicts and production problems in nearby countries.
The main issue centers around Chevron, the company responsible for developing the Aphrodite field. Negotiations between Chevron and the Cypriot government are proving difficult. Chevron is reportedly putting pressure on Cyprus through political channels, reflecting how the volatile situation in the Eastern Mediterranean is affecting international energy policies.
Chevron's approach to the negotiations seems to be part of a strategy to gain more leverage. They have indicated through various energy news sources that progress is being made, which might be a tactic to buy more time or to push for better terms. The outcome of these discussions could be crucial. It might lead to an agreement that satisfies both parties, or it could result in a long delay, legal battles, or additional demands from Chevron.
A key milestone is approaching in November when Chevron is expected to submit its Front-End Engineering Design (FEED) study. This report is important because it will determine the next steps. If the study leads to a final investment decision, it could advance the project. However, if Chevron completes the study without committing to the final investment, it could delay the project further or lead to a situation where Cyprus might have to make more concessions.
Overall, the future of the Aphrodite gas field depends on how these negotiations unfold and how regional tensions influence the process.
Read the full article in Greek here.
