Cyprus Signs $9 Billion Gas Extraction Deal with Israel’s Delek & Other Firms

Nicosia inks its first agreement to develop massive offshore Aphrodite field, estimated to contain over four trillion cubic feet of fuel.

Cyprus announced Thursday it had signed its first natural gas exploitation deal worth $9.3 billion with a consortium comprised of industry giant Shell, US-based Noble and Israel’s Delek.

“Noble Energy, Shell and Delek now have in their hands the first exploitation license granted by the Republic of Cyprus so they can commercialize the deposit,” said Energy Minister George Lakkotrypis, shortly after the agreement was signed.

The signing of the deal comes after the cabinet approved revisions to a production sharing agreement, made at the companies’ request due to a significant fall in hydrocarbon prices since mid-2014.

The re-working of the production contract means Nicosia is set to receive an average yearly income of $520 million over an 18-year period.

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