Cyprus gives Chevron another 6 months to set a timetable for developing a natural gas field

NICOSIA, Cyprus — Cyprus’ government has given Chevron another six months to present a revised plan to develop a sizable natural gas deposit off the island nation’s southern coast, after a previous plan proposed by the U.S. energy company lacked a timetable, an official said. On thursday.

Chevron’s March 29 development proposal for the Aphrodite deposit, estimated at 4.2 billion cubic feet of gas, “was not considered targeted and did not have specific timetables,” the official with knowledge of the matter told The Associated Press . The official spoke on condition of anonymity because he was not authorized to discuss details of the deal.

In a response letter last Thursday, Cypriot Energy Minister George Papanastasiou asked Chevron for “specific and targeted actions” and a “specific timetable” that would confirm its commitment to the development of the gas field.

In January this year, the Cypriot government and Chevron reached a “mutually beneficial” agreement on how to develop the gas field, ending long-stalled negotiations over plans to extract the hydrocarbon since its discovery in 2011.

At the time, the Cypriot energy ministry said that Chevron stated that both sides were “aligned” regarding the “broader framework of exploration of the field”.

Chevron wanted to send the gas to Egypt through a pipeline, but Cyprus preferred to process it in a floating production facility because it would be more economically beneficial for the island nation and would provide more flexibility in supplying other markets.

On Tuesday, Claudio Descalzi, CEO of Italian energy company Eni, discussed with Cypriot President Nikos Christodoulides ways to accelerate the development of gas fields that Eni discovered in the waters off the south coast of Cyprus.

A statement said the two men reviewed discoveries that Eni and its partner TotalEnergies of France made in 2022, confirming “the encouraging results from previous wells.”

Eni, which has been present in Cyprus since 2013, operates five offshore areas – or blocks – and has a stake in two others.