Chevron and the Cypriot government are locked in a dispute over the development of the Aphrodite natural gas field located off Cyprus. Cyprus alleges that Chevron has violated their production-sharing agreement. This dispute emerged shortly after Chevron and its partners submitted a revised development plan in response to a breach notice issued by Cyprus in late August.
Chevron’s updated plan outlines the construction of an independent floating production facility with a daily capacity of approximately 800 million cubic meters. This facility will process gas from four wells and subsequently feed it into the Egyptian gas distribution network. The Aphrodite field is estimated to contain 3.5 trillion cubic feet of gas.
Concerns are mounting that the dispute could derail the project, potentially leading to arbitration and legal entanglements that could stymie progress. An anonymous source from Cyprus’s state oil and gas company expressed frustration, suggesting that Chevron is not adequately addressing Cyprus’s interests. The project’s estimated cost stands at $4 billion. Chevron assumed control of the project through its acquisition of Noble Energy, the original license holder for the Aphrodite field.
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