Negotiations between the American energy conglomerate Chevron and the Republic of Cyprus, while not yet fruitful, have not reached an impasse, according to governmental sources. Despite rumors of a breakdown, talks are set to continue in pursuit of a mutually acceptable resolution before the critical November 5 deadline.

The government spokesperson, Konstantinos Letympiotis, addressing media reports, refuted claims of a deadlock. He emphasized that discussions will persist until November 5, underscoring Cyprus's interest in Chevron's presence within its Exclusive Economic Zone (EEZ). "Chevron's engagement in the Cypriot EEZ is a strong vote of confidence," Letympiotis stated, expressing optimism about reaching an agreement and reminding that existing contracts must be respected within the negotiation timeframe.

The main point of contention revolves around the development and control of the Aphrodite gas field in Cyprus's EEZ, particularly over a floating production unit proposed by Cyprus. This issue has been central in the negotiations, with Cyprus aiming to maintain control over the gas field's development process and maximize the exploitation of its natural gas reserves. The Chevron proposal, however, suggests a direct pipeline transport of the gas to Egypt, diverging from a 2019 agreement between Cyprus's Ministry of Energy and Noble Energy, later acquired by Chevron.

As the November 5 deadline approaches, set by Energy Minister Giorgos Papanastasiou, the Cyprus negotiating team hopes for Chevron's acceptance of a compromise on certain aspects of the deal. However, Cyprus has firmly delineated its stance on the floating production unit. In the event that both sides remain at odds, potentially leading to no amendments, the Ministry of Energy has clarified that it would interpret this as maintaining the 2019 agreement, compelling Chevron to fulfill its contractual obligations.