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Aphrodite gas field

Coordinates: 33°5′40″N 32°59′0″E / 33.09444°N 32.98333°E / 33.09444; 32.98333
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Aphrodite Gas Field
Aphrodite gas field is located in Eastern Mediterranean
Aphrodite gas field
Location of Aphrodite Gas Field
CountryCyprus
RegionEastern Mediterranean
Offshore/onshoreoffshore
Coordinates33°5′40″N 32°59′0″E / 33.09444°N 32.98333°E / 33.09444; 32.98333[1]
OperatorsChevron Corporation[2] Delek Drilling, Shell Oil Company[3]
Field history
Discoveryannounced on 28 December 2011[4]
Production
Estimated gas in place7,000×10^9 cu ft (200×10^9 m3)

Aphrodite gas field is an offshore gas field off the southern coast of Cyprus located at the exploratory drilling block 12 in the country's maritime Exclusive Economic Zone. and bordering the Yishai gas field, located in Israeli territorial waters.[5] Located 34 kilometres (21 mi) west of Israel's Leviathan gas field, block 12 is believed to hold 3.6 to 6 trillion cubic feet (100×10^9 to 170×10^9 m3) of natural gas.[6][7] In 2014, the reserve estimate for the quantity of natural gas held by Aphrodite was raised by 12% due to new data received from the Yishai prospect as reported by Delek Drilling to the Israel Securities Authority. [8] [9] The cost of the field's development was estimated to range from $2.5 billion to $3.5 billion. [10]

Noble Energy received the concession to explore block 12 in October 2008.[11] In August 2011, Noble entered into a production-sharing agreement with the Cypriot government regarding the block's commercial development.[12] Sources in Cyprus indicated in mid-September that Noble had commenced exploratory drilling of the block.[13] The drilling, which took 116 days to complete, resulted in the finding of gas in high-quality Miocene sand intervals at the Aphrodite field.[14]

In 2015, Noble Energy, Delek Drilling, and Avner Oil Exploration filed a Declaration of Commerciality of the field to be followed by a development and production plan. Noble Energy sold a 35% stake of Block 12, which includes Aphrodite, to BG for $165 million.[15]

Aphrodite-Yishai Dispute

The Aphrodite gas field has been the subject of a dispute between Cyprus and Israel since a part of the field, known as Yishai, stretches into Israel's maritime zone and gas being pumped from Aphrodite could reduce the amount of gas available on the Israeli side. Some estimates state that up to 10% of the total reservoir could be Israeli, making up to 10 BCM of gas worth nearly $1.5 billion at stake. In May 2018, Israeli Energy Minister Yuval Steinitz attended a meeting in Cyprus with Prime Minister Benjamin Netanyahu and said that the dispute could be settled within six months, but that if an understanding would not be reached, a professional arbiter would be asked to examine the findings from both sides and decide on the proper division.[16] [17]

In July 2018, development moved forward despite the dispute, which involved how to divide revenues between the Aphrodite and Yishai fields as well as OECD or EU rules should be used. The Aphrodite partners submitted a plan to the government of Cyprus to develop the field, to sell the gas to Cypriot users, and to export it to Egypt. [18]

In November 2019, Delek Drilling, Noble Energy, and Shell signed a 25-year concession agreement with Cyprus for the exploitation of Aphrodite. In response, Israeli Energy Ministry Director General Udi Adiri sent a letter to the partner companies on November 24, 2019 saying that development must not begin until an agreement was reached between the governments of Israel and Cyprus.[19] Cypriot Energy Minister Yiorgos Lakkotrypis responded to the letter by saying that the development of Aphrodite would continue as planned, that a procedure for a “special agreement” over unitization of the block was in progress and would be followed, and that there was no link between Aphrodite development and the procedure for the special agreement. Cyprus awarded a development license to the partners, who are to drill appraisal wells and conduct front-end engineering and design (FEED) work over the following two years, with a final investment decision anticipated for 2022. A commercial agreement is being sought to export up to 800 MMcf/d to Egypt via a pipeline that will be constructed as a separate project in which the gas from Aphrodite would be processed at the Shell-operate Idku facility and re-exported as LNG by 2025. [20]

See also

References

  1. ^ Ali, Jaber (15 July 2011). "Lebanese Cabinet discusses offshore energy policies". Middle East Confidential. Retrieved 7 September 2011.
  2. ^ "Noble Energy To Drill Offshore Cyprus After October 2011 Under PSC Terms". Zawya. 8 November 2010. Retrieved 7 September 2011.
  3. ^ "Aphrodite Gas Field". offshore-technology. 4 June 2018. Retrieved 3 March 2020.
  4. ^ "Noble Energy Announces Significant Natural Gas Discovery Offshore Republic of Cyprus". PR Newswire. 28 December 2011.
  5. ^ "Cyprus, Israel seek gas-sharing formula to unlock East Med energy hub". Reuters (in German). 2018-05-07. Retrieved 2020-03-09.
  6. ^ "Offshore field holds estimated 5 Tcf of natural gas". Cyprus Gas News. 4 October 2013. Retrieved 23 February 2014.
  7. ^ Hadjicostis, Menelaos (15 November 2011). "US firm: 3-9 trillion cubic feet of gas off Cyprus". Yahoo! News. Nicosia, Cyprus. Associated Press. Retrieved 17 November 2011.
  8. ^ "Aphrodite Gas Field Reserve Estimate Raised by 12%". www.goldnews.com.cy. Retrieved 2020-03-09.
  9. ^ TASE. "דף הבית - מאיה – מערכת אינטרנט להודעות | הבורסה לניירות ערך". מאיה (in Hebrew). Retrieved 2020-03-09.
  10. ^ Benmeleh, Yaacov (March 21, 2018). "Shell Mulls 15-Year Deal for Israeli, Cypriot Gas, Partner Says". Bloomberg News.
  11. ^ Kennedy, Charles (24 June 2011). "U.S. Company to Begin Drilling in Cyprus Offshore Waters by Year End". OilPrice.com. Retrieved 7 September 2011.
  12. ^ Ament, Carol (19 August 2011). "Full speed ahead for Cyprus drilling". Famagusta Gazette. Archived from the original on 26 March 2012. Retrieved 7 September 2011.
  13. ^ Menelaos Hadjicostis; Suzan Fraser (19 September 2011). "Cyprus Drills Offshore Despite Turkish Warning". ABC News. Nicosia. Associated Press. Retrieved 20 September 2011.
  14. ^ sigmalive. "Aphrodite field declared commercial: Minister of Energy | News". www.sigmalive.com. Retrieved 2020-03-09.
  15. ^ "BG partners with Noble, Delek in Cyprus's Aphrodite - Globes". en.globes.co.il (in Hebrew). 2015-11-23. Retrieved 2020-03-09.
  16. ^ Coren, Ora (2018-05-11). "Israel's 5% Claim on Gas in Cypriot Field Causes Dispute With Nicosia". Haaretz. Retrieved 2020-03-09.
  17. ^ Coren, Ora (2018-07-24). "Israel Stays Mum as Development Work Begins at Giant Cyprus Gas Field". Haaretz. Retrieved 2020-03-09.
  18. ^ Coren, Ora (2018-07-24). "Israel Stays Mum as Development Work Begins at Giant Cyprus Gas Field". Haaretz. Retrieved 2020-03-09.
  19. ^ "Israel tells energy companies to hold fire on Cyprus gas project". Reuters. 2019-12-09. Retrieved 2020-03-09.
  20. ^ "Cyprus gas field project still on despite Israeli claim: minister | Hellenic Shipping News Worldwide". www.hellenicshippingnews.com. Retrieved 2020-03-09.

Further reading

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