CVX

Aphrodite Development Path

Cyprus's First Gas Project

Aphrodite was Cyprus's first major gas discovery in 2011. Now operated by Chevron (after acquiring Noble Energy), it's the most advanced project toward commercial production, targeting first gas in 2027-2028.

4.1
Tcf Reserves (2P)
$3-4B
Development CAPEX
2027-28
Target First Gas
Block 12
Location

Development Concept

Egypt Pipeline Option

Aphrodite gas will be exported via pipeline to Egypt for processing at existing LNG facilities, then re-exported to global markets.

Gas Flow
~800 mmscf/d peak rate
Pipeline
~200 km subsea to Egypt
Processing
Idku LNG (Shell/Petronas)

Why Egypt Pipeline?

  • • Lower CAPEX than standalone LNG ($3-4B vs $6-8B)
  • • Faster time to first gas (uses existing infrastructure)
  • • Egypt has underutilized LNG capacity seeking gas supply
  • • Synergies with potential Block 6 and Glaucus tie-ins

Project Cost Breakdown

Component Description Est. Cost
Subsea Wells 6-8 production wells $1.0-1.5B
Subsea Infrastructure Manifolds, flowlines, umbilicals $0.5-0.8B
Export Pipeline ~200km to Egypt (tie to EMG line) $0.8-1.2B
Platform/Topsides Minimal processing (compression) $0.4-0.6B
Egypt Facilities Modifications at Idku LNG $0.3-0.5B
Total Estimated CAPEX $3.0-4.5B

Commercial Agreements Status

Egypt Transit/Processing Agreement

In Progress

Agreement with Egypt on pipeline tariffs, processing fees, and LNG plant tolling. MoU signed 2021, final terms under negotiation.

Gas Sales Agreement (GSA)

In Progress

Long-term contracts with LNG buyers (Asian, European utilities). Chevron leveraging global trading relationships.

Israel Unitization

Pending

Aphrodite may extend into Israeli waters. If confirmed, a unitization agreement would be needed. Currently considered low probability.

Aphrodite Timeline

2008 Noble Energy awarded Block 12 Noble
2011 Aphrodite discovery - first major Cyprus find Noble
2013 Aphrodite-2 appraisal well confirms discovery Noble
2015 Development concept studies begin Noble
2018 Egypt pipeline option selected as base case Noble
2020 Chevron acquires Noble Energy ($13B merger) Chevron
2021 MoU signed with Egypt on commercial terms Chevron
2022 FEED contract awarded Chevron
2023 Commercial negotiations with Egypt continue Chevron
2024 Final commercial agreements expected Chevron
2025-26 FID targeted Chevron
2027-28 First gas (target) Chevron

Block 12 Partners

CVX
Chevron
35%
Operator
BG
Shell (BG)
35%
Partner
DL
Delek
30%
Partner

Chevron inherited Noble's position in the 2020 merger. Shell (via BG Group) and Israel's Delek bring regional expertise and complementary capabilities.

Path to FID

Final Investment Decision (FID) is the key milestone. Once reached, Chevron commits billions in capital and construction begins. Here's what needs to happen:

1
Egypt Commercial Agreement
Finalize tolling, transit fees, and capacity allocation
2
LNG Offtake Agreements
Secure binding contracts with buyers for 15-20 year terms
3
Project Financing
Arrange $2-3B in project finance (debt + equity)
4
Partner Alignment
All partners (Chevron, Shell, Delek) approve investment