Cyprus has struck a production-sharing deal for the Aphrodite gas reservoir worth over $9 billion over 18 years between the government and the Noble Energy, Delek and Shell joint venture (JV).

Based on published reports, the agreed profit split is now about 57 per cent to Cyprus and 43 per cent to the JV. So the total profit would be $16.7billion. The development cost, including operations and maintenance, is reported to be $8billion. This means that total revenue from selling the gas would be $24.7billion.

Based on the plan, the first gas is expected between 2020 and 2025.

The energy minister said this would be the biggest infrastructure project ever undertaken in the Republic of Cyprus, worth some €7.9bn.

Natural Gas discoveries in Cyprus’ economic zone, combined with the island’s strategic position, provide the springboard for Cyprus’ transformation into a regional energy hub. The energy sector’s development will have a positive impact on the Cyprus economy and especially on job creation, foreign investment and GDP growth.