31 May 2023
NewMed Energy ("NewMed" or the "Company")
Further progress towards development of NewMed Energy's discovery in Cyprus: Aphrodite Reservoir to be Connected to Existing Processing and Production Facility in Egypt
· The partners in the reservoir have submitted an updated development plan for the Cypriot government's approval;
· Production and processing of the natural gas from the reservoir will be carried out via a subsea pipeline which will be connected to an existing processing and production facility in Egypt;
· The updated plan is expected to accelerate and reduce the cost of development;
· Yossi Abu, CEO of NewMed Energy: "The regional ties that we have forged create new possibilities for regional and global collaborations".
NewMed Energy today (31 May 2023) reported that the partners in the Aphrodite reservoir (NewMed Energy, Chevron, Shell) have submitted an updated plan for development of the reservoir for the Cypriot government's approval, which includes a change to the fundamental project concept from the original plan.
As set out in the updated plan, in order to perform the natural gas processing and production, the partners will build a subsea pipeline that will connect the reservoir in Cyprus to existing production infrastructure in Egypt. This is a significant and effective step for development of the reservoir while optimizing the use of existing infrastructures.
According to a current estimate made by the operator Chevron, the updated development plan is expected to reduce the development costs compared to the original plan, and bring forward commencement of production of the natural gas from the reservoir. The Aphrodite partners met with the new Cypriot Minister of Energy on Monday to discuss the progress of the development of the reservoir.
Commencement of the drilling of the A-3 appraisal well was announced earlier in May and is expected to take around three months and will be used in the future as a production well. The size of the reservoir is currently estimated at 4.4 TCF.
Yossi Abu, CEO of NewMed Energy: "The regional ties that we have forged create possibilities for regional and global collaborations and infrastructure-sharing, which will help meet demand for natural gas anywhere around the globe. We are making significant progress with development of the Aphrodite reservoir in accordance with the milestones we set in the work plan."
About Aphrodite:
The Aphrodite reservoir, in the area of Block 12, is located around 170 km offshore Limassol, Cyprus. The reservoir is estimated at 4.4 TCF and is held by: NewMed Energy 30%, Chevron 35%, Shell 35%.
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