"Cronos" and "Aphrodite" are locked in with signatures on two historic agreements.

The Republic of Cyprus secures the core sale terms for its natural gas.

An energy restart that aims to shift the data on the Eastern Mediterranean map and secure revenues for the Cypriot economy has been signaled by the Cabinet's simultaneous approval of commercial agreements for the "Cronos" (Block 6) and "Aphrodite" (Block 12) fields.

With these two decisions, the Republic of Cyprus "locks in" the core terms for selling its natural gas. This compels two distinct energy giants, the Italian-French consortium Eni-Total Energies and the American firm Chevron with its partners, to commit to specific timelines for final investment decisions and the commencement of construction works.

The two agreements, which will be signed on behalf of the Republic of Cyprus by the Minister of Energy, Commerce, and Industry, Michalis Damianos, serve as the official precursor to the final Gas Sales Agreements (GSA). According to sources close to the Presidential Palace, the two agreements define the commercial formula upon which the infrastructure financing will be based. The core pillars of the terms provide for:

• Securing revenue through "take-or-pay" clauses: International buyers commit to absorbing specific volumes annually. In the event of an inability to absorb them, the consortium is required to pay the value anyway, ensuring a stable revenue stream for Cyprus.
• Linkage to international indices: Natural gas pricing will follow market fluctuations (indexed to Brent crude oil and the European TTF index), while maintaining safety mechanisms (a price "floor") to protect investments during periods of crisis.
• Progressive profit-sharing (Profit Oil): Profits will be split between the state and the companies after deducting development costs (Cost Oil), with the Republic's percentage increasing as production volume rises.

For the "Cronos" field in Block 6, the Field Development and Production Plan (FDP) submitted by Eni and TotalEnergies favors a fast and highly flexible solution. The plan provides for a direct subsea tie-back of production wells to Eni’s existing infrastructure in Egypt (likely utilizing the network of the giant Zohr field). This bypasses uncertain and costly new construction, allowing Cypriot gas to flow to markets within the next 2–3 years.

The major breakthrough concerns the "Aphrodite" field (Block 12), which had remained gridlocked in successive negotiations and plan revisions. The Cabinet's approval of the core sale terms unlocks the process.

The operator, Chevron, along with its partners BG (Shell) and NewMed Energy, has officially committed to making the Final Investment Decision (FID) within 2027. The plan for "Aphrodite" involves transporting the natural gas via a new subsea pipeline to Egypt's liquefaction terminals (Idku or Damietta), from where it will be exported as LNG to Europe and other international destinations.

The simultaneous advancement of these two projects serves as a geopolitical response to challenges against the Cypriot Exclusive Economic Zone (EEZ). Through these moves, Cyprus transforms into an active player on the energy chessboard, as the presence of American, French, and Italian interests shields the sovereign rights of the Republic. Concurrently, the expected revenues will be funneled into the National Investment Fund (modeled after the Norwegian sovereign wealth fund), safeguarding future generations.

Source: Brief