NiseriN/iStock via Getty Images
The government of Cyprus has told Chevron (New York Stock Exchange: CVX) the company has breached their production-sharing agreement in the 3.5 Tcf Aphrodite offshore natural gas field, Energy Intelligence reported Tuesday, shortly after Chevron and its development partners unveiled a new $4 billion development plan For the field.
The updated plan was reportedly a response to the breach of contract notice issued by the Cypriot government in late August.
The plan calls for four production wells connected to a floating production unit in Cypriot waters with a nominal production capacity of 800 million cubic feet per day, with the gas to be exported to Egypt via a subsea pipeline, Aphrodite partner NewMed Energy (OTCPK:DKDRF) said.
Aphrodite's partners include operator Chevron (CVX) and Shell (SHEL), each with a 35% stake, and NewMed (OTCPK:DKDRF) with 30%.
Some in Cyprus fear that the government's accusation of breach of contract could lead to the project collapsing. Energy Intelligence reported.
There have been lengthy discussions about the future development of Aphrodite since Chevron (CVX) attempted to introduce changes to a field development plan for 2019.
