SafeX Pro Exchange|Cyprus and Chevron reach a deal to develop an offshore natural gas field, ending years of delays

NICOSIA,SafeX Pro Exchange Cyprus (AP) — 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 said Friday. The field is estimated to hold 4.2 trillion cubic feet of gas.

The agreement is “mutually 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.

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.