NICOSIA, Cyprus (AP) 鈥� The Cyprus government and U.S. energy company Chevron have reached a deal on how to develop the Aphrodite gas field, the first to be discovered under the seafloor off Cyprus, an official Friday. The field is estimated to hold 4.2 trillion cubic feet of gas.
The agreement is 鈥渕utually beneficial" for both Cyprus and the company, the Cypriot official told The Associated Press but did not disclose further details.
It was not immediately clear when the deal was reached. The official spoke on condition of anonymity because he was not authorized to discuss the agreement publicly.
The Cypriot energy ministry said in a statement Friday a letter from Chevron affirmed that both sides are in 鈥渁lignment鈥� regarding the 鈥渨ider framework of the field's exploitation.鈥� The ministry added that they would 鈥渋ntensify discussions鈥� in the coming weeks on the agreed-upon development plan 鈥渇or the mutually beneficial exploitation鈥� of the site.
Chevron wanted to send the gas to Egypt through a pipeline, but Cyprus preferred to process it on a floating production facility because it would be more economically beneficial for the Cypriot government and would lend more flexibility to supplying other markets.
The agreement ends protracted negotiations that stalled development of the field for years and now paves the way for extraction of the hydrocarbon after a dozen years since the deposit was discovered.
Menelaos Hadjicostis, The Associated Press
