Government rejects proposal by Chevron-led consortium

The Cypriot government has once again turned down the proposal put forward by the Chevron, NewMed Energy, and BG Cyprus (Shell) consortium to "optimize" the Development and Production Plan of the Aphrodite field. They've asked the consortium to confirm their agreement on specific development actions within six months.

According to the Ministry of Energy, they received the consortium's proposal to tweak the agreed plan for the field on April 2. The ministry promised to review it and inform the consortium of their decision.

In a briefing to the Tel Aviv Stock Exchange, NewMed Energy revealed that the Minister of Energy sent a letter to Chevron on April 30, stating that the proposed adjustments to the original plan, presented to the Cypriot government representatives on March 28, 2024, were not acceptable. The letter requests written confirmation from the partners within six months to proceed with the FEED (Front-end Engineering and Design) study as per the original plan. If agreed, certain extensions will be granted to meet milestones.

New Med, along with its partners in the Aphrodite field, is considering their response to the government's letter and the potential next steps.

Chevron's proposal, which centered on constructing a floating production unit, lacked specificity and timelines, according to reports. The Ministry of Energy deemed it inadequate and requested targeted actions and a clear timeline. They've given the company six months to respond.

[With information from CNA]