MONTREAL (Oil Monster): Egypt and Chevron are completing the final technical, commercial and legal arrangements needed to move Cyprus’ Aphrodite natural gas development toward long-lead equipment procurement and a final investment decision.
The latest discussions mark another step toward developing the Eastern Mediterranean field and connecting it to Egypt through a planned subsea pipeline, allowing Aphrodite gas to enter the Egyptian transmission system for domestic use and potential LNG export.
Egyptian Petroleum and Mineral Resources Minister Karim Badawi reviewed the remaining project steps with senior Chevron executives at the conclusion of his visit to Athens.
Egypt’s Ministry of Petroleum and Mineral Resources said the latest meeting focused on completing the procedures, agreements and other arrangements still required to move the project into implementation.
The next major milestone would be a decision on procurement of long-lead items, followed by the project’s final investment decision.
Long-lead equipment is typically ordered before full construction begins because manufacturing and delivery can take substantial time and affect the overall project schedule.
Badawi directed the Egyptian teams involved in the project to provide the coordination and support needed to complete the remaining work as quickly as possible.
ALSO READ: Egypt, Chevron Push Aphrodite Gas Link Toward FID
Chevron Cyprus operates the Aphrodite field with a 35% working interest.
NewMed Energy holds 30%, while Shell currently owns the remaining 35% through BG Cyprus.
Shell agreed in July 2026 to sell BG Cyprus to MOL Group for up to $720 million. The transaction is expected to close in early 2027, subject to regulatory approvals and other closing conditions.
If completed, MOL would assume Shell’s 35% non-operated interest in Aphrodite.
The approved Aphrodite development concept calls for four initial production wells connected to a dedicated floating production unit above the reservoir.
The facility is designed for maximum production of approximately 800 million cubic feet of natural gas per day.
The updated development plan has been estimated at approximately $4 billion.
Chevron and its partners have already moved the project into front-end engineering and design, or FEED, as they work toward FID.
ALSO READ: Aphrodite Gas Project Offshore Cyprus Reaches FEED
The development calls for Aphrodite gas to be transported from Cyprus to Egypt through a new subsea pipeline.
Egypt Oil & Gas reported that the planned connection would extend approximately 280 kilometers and link Cypriot production with Egyptian gas infrastructure.
Once in Egypt, the gas could be processed through the country’s existing system and supplied to the domestic market or ultimately redirected to international markets through LNG infrastructure.
The commercial framework for Aphrodite has advanced significantly during 2026.
In April, the Aphrodite partners and Cyprus Hydrocarbons Company initialed terms with the Egyptian Natural Gas Holding Company, or EGAS, covering the sale of the field’s gas production.
The proposed arrangement covers approximately 700 million cubic feet per day, or around 7.2 billion cubic meters annually, during the main production phase.
The commercial structure has been designed around a long-term sales arrangement of up to 15 years, with the possibility of an extension.
The proposed development makes Egypt more than a transit route.
Under the commercial framework being negotiated, Aphrodite gas would enter Egypt’s transmission and processing system, giving the country a central role in handling and marketing production from the Cypriot field.
Egypt already has extensive gas-processing infrastructure and LNG export capacity at Idku and Damietta, allowing Eastern Mediterranean resources to reach both domestic and international buyers without construction of a new liquefaction plant in Cyprus.
The planned commercial supply level of approximately 700 MMcf/d is equivalent to roughly 7.2 bcm of gas per year.
That production would provide a meaningful new source of Eastern Mediterranean gas for Egypt and potentially for international LNG markets.
The field was discovered in 2011 in Cyprus’ offshore Block 12 and has since undergone appraisal, development-plan revisions and engineering work.
Badawi said connecting Aphrodite would allow Egypt to make greater use of its existing infrastructure for receiving, processing and handling natural gas.
The strategy is intended to turn discoveries across the Eastern Mediterranean into commercial production without requiring every country to construct its own complete export system.
Egypt and Cyprus are pursuing a similar infrastructure-sharing strategy for other offshore resources, including the Eni-operated Cronos gas field.
ALSO READ: Cypriot Cronos Gas Field to Be Connected to Egypt
The Aphrodite discussions come as Chevron expands its involvement in Egypt’s Mediterranean upstream sector.
Chevron recently committed at least $88 million to exploration in Egypt’s deepwater Lotus block, including two exploration wells and reprocessing of 3D seismic data.
Together, the Lotus exploration program and Aphrodite connection project deepen Chevron’s exposure to the Eastern Mediterranean gas market.
ALSO READ: Chevron Commits $88M to Egypt’s Deepwater Lotus Block
The project is also moving toward FID while its ownership structure is undergoing a planned change.
Shell announced in July that it had agreed to sell BG Cyprus, which owns the 35% Aphrodite interest, to Hungary’s MOL Group.
The sale could be worth up to $720 million depending on adjustments and milestone-related payments.
Shell said the transaction reflects its broader capital-allocation strategy and focus on projects that strengthen its integrated LNG portfolio.
Until that transaction closes, Shell remains the legal holder of the Aphrodite interest.
Despite the recent progress, Aphrodite has not yet reached a final investment decision.
The project still requires completion of remaining commercial, legal and technical arrangements, procurement decisions and partner approvals.
The distinction is important: the latest meeting signals that Aphrodite is approaching another major development milestone, but it is not yet a fully sanctioned construction project.
The immediate focus is completion of the outstanding project agreements and a decision on procurement of long-lead equipment.
Those steps would clear the way for Chevron and its partners to consider FID and begin full project implementation.
NewMed has previously indicated that FID is targeted during 2027, with first gas expected around 2031 if development proceeds on schedule.
What is the Aphrodite gas project?
Aphrodite is a deepwater natural gas field in Cyprus’ offshore Block 12. Chevron operates the project, which is being developed to export gas to Egypt.
Has Chevron taken FID on Aphrodite?
No. Egypt and Chevron are completing technical, commercial and legal steps ahead of long-lead procurement and a future final investment decision.
How much gas could Aphrodite produce?
The approved development concept has maximum production capacity of about 800 MMcf/d, while the proposed Egyptian sales structure is based on roughly 700 MMcf/d, or about 7.2 bcm annually.
How will Aphrodite gas reach Egypt?
The project plans to use a new subsea pipeline connecting the Cypriot field with Egypt’s natural gas transmission system.
Who owns the Aphrodite gas field?
Chevron currently holds 35% and operates the field, Shell holds 35% through BG Cyprus, and NewMed Energy holds 30%. Shell has agreed to sell its interest to MOL Group, subject to closing and regulatory approvals.
Egypt, Chevron Push Aphrodite Gas Link Toward FID
Aphrodite Gas Project Offshore Cyprus Reaches FEED
Chevron Starts Seabed Survey for Aphrodite-Egypt Pipeline
Chevron Commits $88M to Egypt’s Deepwater Lotus Block
Cypriot Cronos Gas Field to Be Connected to Egypt
Source: Egypt Oil & Gas; Egypt Ministry of Petroleum and Mineral Resources; NewMed Energy.
Courtesy: www.egyptoil-gas.com
