NewMed Energy has announced that the partners involved in the Aphrodite gas field will submit an updated development and production plan in the coming days. This revised plan is based on the original development and production framework that was previously approved by the Cypriot Government. The announcement follows a warning letter issued by Cyprus' Minister of Energy, George Papanastasiou, regarding the potential termination of the contract.

In a statement issued via the Tel Aviv Stock Exchange, NewMed Energy confirmed that on August 25, 2024, the operator of the field, Chevron, received a violation notice from the Cypriot Minister of Energy. According to the notice, the Aphrodite field partners have three months to rectify the breach concerning the failure to meet a specific milestone. If the issue is not resolved, the Cypriot Government reserves the right to terminate the Production Sharing Contract.

The milestone in question pertains to the initiation of the Front-End Engineering and Design (FEED) process for the field’s development.

It is important to note that on April 30, the Minister of Energy had previously sent a letter to Chevron, granting the consortium six months to comply with the original development plan, which was submitted in 2019 by the former operator, Noble Energy. This was confirmed in an earlier statement by NewMed Energy.

The Aphrodite consortium is composed of Chevron Cyprus Limited, holding a 35% stake, BG Cyprus (Shell) with another 35%, and NewMed Energy with a 30% share.

Sources familiar with the matter told the Cyprus News Agency that the government's actions are in line with the provisions of the contract. Their primary concern, they emphasized, remains the execution of the country’s energy program within the contractual frameworks agreed upon by the Republic of Cyprus. They further recalled that the Cypriot Government has repeatedly requested the consortium to implement the Development and Production Plan agreed upon in 2019.

Discussions on the matter began in August 2023, when Chevron submitted a revised development plan that was subsequently rejected by the Republic of Cyprus.