The Aphrodite gas field is a topic of conversation these days. Aphrodite Cyprus is an offshore gas field that can be found off of Cyprus’ southern coast. Aphrodite Israel is a gas project that is located about 21 miles away from the Leviathan gas field. Experts believe that there are between 3.6 and 6 trillion cubic feet of natural gas. This is a great opportunity for Cyprus, as this can offer an amazing boost to the economy in this country because it can help ease the rising unemployment.
There are some issues but all of them are fixable. For one thing, Turkey doesn’t recognize the border agreements between Cyprus and their neighbors. Cyprus has demarcated their maritime border with countries like Israel, Lebanon, and Egypt in the 2000s. However, Turkey has threatened to mobilize their naval forces if Cyprus followed through with their plans to drill at this location. Since other countries and the UN supported this move by Cyprus, they started drilling in 2011 for exploratory purposes without any issues from Turkey.
Recently in June 2019, the government reached an agreement with energy companies to develop the gas field. Cyprus walks away with 57% of the profits from the gas field, with the joint venture getting the minority share of 47%. However, if the prices of the barrel go up (above $70/barrel) Cyprus will retain a higher percentage of profits. Unfortunately, this also means that if the price goes down they get less of a share. This may seem like it could be a bad thing, but there are some upsides to this agreement with the joint venture.
There are provisions in this new agreement which makes sure that there is a strict timetable for the development of the Aphrodite project. If the project does not adhere to these timetables, there are penalties that the joint venture will have to pay. This ensures that the project is completed as soon as possible, which benefits both the government of Cyprus and the joint venture. This agreement also allows for negotiating with a liquefication plant in Egypt, which can speed up the process if it seems financially feasible to go this route.
The development plan has not been fully finalized yet, but there is a first phase that has been created with the recent plan which includes 5 production wells. It will start with a high flow at the sea depth of 1,700 meters with the plan of achieving an overall depth of 5,000 meters. It is important to know that there are some issues that have led to some uncertainties with this project. As of now, the reservoir is actually fractured as well as being divided into various non-communicating compartments. There have only been 2 exploratory drilling projects done so far on Aphrodite, so there are still more that need to be completed to get a more accurate idea of the gas that is in this field. The early projections are positive but the numbers can either go up or down depending on the additional appraisal drilling tasks.
Aphrodite Cyprus project is one of the latest adventures for Cyprus in gas monetization.
Project Aphrodite is a natural gas field located off of the southern coast of this country, in Cyprus’ maritime Exclusive Economic Zone.
This is happening 7 years after they initially discovered natural gas in this zone.Since the discovery in Block 12, there have been two more discoveries at Block 6 and Block 10.
The Energy Minister Yiorgos Lakkotrypis was talking about this discovery, mentioning that the Block 10 reservoir is of good quality with a high recoverability potential.
Before making any real decisions, there are a variety of different perimeters that need to be considered.
After the Aphrodite gas field was discovered, there was a master plan created and a plant site was prepared in anticipation for the future.
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