A Host Government Agreement and a Memorandum of Understanding concerning Cyprus’ Exclusive Economic Zone (EEZ) were signed on Monday in Cairo, marking a significant milestone in the exploitation of natural gas reserves and the expansion of Cyprus-Egypt energy cooperation. The signing took place in the presence of Cypriot President Nikos Christodoulides and Egyptian President Abdel Fattah el-Sisi.

According to an official Presidential announcement, these agreements represent a crucial step in Cyprus’ energy strategy, highlighting the country’s strategic role in hydrocarbon development in the region.

The agreements were signed on the sidelines of the EGYPES 2025 international energy exhibition, attended by companies operating in Cyprus’ offshore energy sector.

Specifically, an MoU was signed between the Republic of Cyprus, Egypt, and license holders Chevron Cyprus Limited, NewMed Energy LP, and BG Cyprus Limited, focusing on the development of the Aphrodite natural gas field.

The MoU establishes a framework for the effective commercialization of natural gas extracted from the Aphrodite reservoir.

Following this, a Host Government Agreement was signed for the development of hydrocarbons in Block 6 of Cyprus' EEZ. This agreement outlines how the licensed consortium (ENI/TOTAL) and Egypt, as the host country, will collaborate on the exploitation and commercialization of natural gas discoveries within the block, including the Cronos, Zeus, and Calypso fields.

According to the Presidential statement, these agreements not only facilitate the exploitation of hydrocarbon reserves but also broaden the scope of energy cooperation between Cyprus and Egypt. This collaboration is expected to contribute to regional stability and enhance Cyprus’ geopolitical standing in the Eastern Mediterranean, the statement claims.