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Cyprus strikes deal with Noble, Shell and Delek

Christian Fernsby |
Cyprus struck a preliminary agreement with Noble, Shell and Delek for the allocation of revenues from the utilization of the Aphrodite deposit and the transfer of natural gas by underwater pipeline to the Idku LNG terminal in Egypt.

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Energy Minister Giorgos Lakkotropis said the renegotiated deal with the companies is expected to bring in $520 million per year as state revenue, a total of approximately $9.4 billion for the agreed 18-year contract duration.

The Minister said that compared to the existing contract, the new agreement will yield $ 850 million less but the agreement will enable the energy plans of the Republic to be materialized.

Mr Lakkotrypis also said that the new agreement provides for “specific and very strict clauses” to ensure the realization of investments in the Cyprus exclusive economic zone (EEZ).

He said the deal would soon be approved by the Council of Ministers and that it would be possible to utilize natural gas by 2024 or 2025.

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