Partners in Cyprus' Aphrodite offshore gas field and the Cyprus Hydrocarbons Company have signed a memorandum of understanding with Egypt's state gas company EGAS for the sale of all recoverable natural gas from the reservoir, NewMed Energy said on Wednesday.
In a statement filed with the Tel Aviv Stock Exchange and addressed to the Israel Securities Authority, NewMed Energy said all signatures required for the memorandum were obtained on July 22.
The agreement covers the sale to the Egyptian Natural Gas Holding Company (EGAS) of all quantities of natural gas that can be extracted from the Aphrodite field, located in Block 12 of Cyprus' exclusive economic zone.
NewMed said the memorandum was signed by the field's partners, the Cyprus Hydrocarbons Company and EGAS.
The company said signatures are expected in the coming weeks on a Host Government Agreement with the Egyptian government covering the development of a system off the coast of Egypt for the transmission of natural gas from ‘Aphrodite’ to Egypt.
According to the statement, the parties are also negotiating a binding agreement governing the supply of natural gas from Aphrodite to EGAS.
The Aphrodite consortium consists of Chevron Cyprus Limited with a 35% stake, BG Cyprus Limited with 35%, and NewMed Energy with 30%.
The Aphrodite field is the first and one of the largest natural gas discoveries in Cyprus' offshore waters, forming a key part of the country's efforts to commercialise its Eastern Mediterranean energy resources through export infrastructure linked to regional markets, specifically Egypt.
Source: CNA
