U.S. energy major Chevron Corporation CVX and the Republic of Cyprus have decided to hold discussions over the next four months to get a mutually beneficial deal that will ensure the Aphrodite gas field's development without further delays.

In order to go ahead with the project, the Chevron-led consortium has submitted an updated development plan to the Republic of Cyprus, hoping to avoid the termination of the project.

Chevron’s Interest in the Project

The Aphrodite gas field was discovered by Noble Energy in September 2011 and was appraised in 2013. The gas field is situated at a water depth of 1,700 meters in Block 12 offshore Cyprus. It lies 160 kilometers south of the city of Limassol and 30 kilometers toward the northwest of the Leviathan field, which is located in Israeli waters.

Chevron, the operator of the block, holds a 35% stake. Its partners in the block are Shell plc and NewMed Energy, holding a 35% and 30% stake, respectively.

After Chevron acquired Nobel Energy in 2020, it submitted a revised development plan to the Cyprus government, which was rejected in August 2024. Subsequently, a notice of breach was issued by Cyprus and the government also set a three-month deadline to advance the project and resolve the issues.

Overview of the Cyprus and Chevron Meeting for the Aphrodite Gas Field

In a joint press release, it was announced that productive meetings were held between George Papanastasiou, Minister of Energy, Commerce and Industry of the Republic of Cyprus, and Frank Cassulo, Chevron’s vice president of International E&P in Nicosia, regarding the Aphrodite project. It was decided that in the coming few months they will hold various discussions to reach a peaceful solution acceptable to both the parties.

The main focus of the government is to promote the projects to benefit the country while upholding the rights of the Republic. At the same time, both parties intend to focus on a common goal and path to succeed in such a complex project.

Under the updated plan, both parties agreed to build an 800-million cubic feet per day (MMcf/d) floating production unit with natural gas exported via a yet-to-be-built pipeline to the Egyptian gas transmission system. The Cyprus government also wants some of the gas from the Aphrodite field to be supplied to the local market and also support an LNG hub at the Vasilikos port, located between Limassol and Larnaca.

CVX’s Zacks Rank and Key Picks

Generating more than $200 billion in annual revenues and producing over three million barrels per day of oil equivalent,currently, CVX has a Zacks Rank #3 (Hold).