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Chevron Receives Approval for Aphrodite Gas Field Development
CVXChevron(CVX) ZACKS·2025-02-18 19:41

Core Insights - Chevron Corporation, along with partners Shell plc and NewMed Energy, has received approval for an updated development and production plan for the Aphrodite gas field, estimated to cost 4billion[1][5]−Theupdatedplanaimstoacceleratetechnicalandengineeringstages,leadingtofront−endengineeringanddesign(FEED)andaFinalInvestmentDecision(FID)[2]−TheAphroditegasfieldisexpectedtohaveamaximumproductioncapacityof800millioncubicfeetofgasperday,withinitialextractionthroughfourproducingwells[3]DevelopmentandProductionPlan−Theapproveddevelopmentplanincludestheconstructionofafloatingproductionunit(FPU)andsubseapipelinesforgasexporttoEgypt[2]−AnamendmenttotheProductionSharingContracthasbeensigned,committingtoreachanFIDforthegasfield′sdevelopmentby2027[4]EconomicandRegionalImpact−Thetotalprojectcostof4 billion [1][5] - The updated plan aims to accelerate technical and engineering stages, leading to front-end engineering and design (FEED) and a Final Investment Decision (FID) [2] - The Aphrodite gas field is expected to have a maximum production capacity of 800 million cubic feet of gas per day, with initial extraction through four producing wells [3] Development and Production Plan - The approved development plan includes the construction of a floating production unit (FPU) and subsea pipelines for gas export to Egypt [2] - An amendment to the Production Sharing Contract has been signed, committing to reach an FID for the gas field's development by 2027 [4] Economic and Regional Impact - The total project cost of 4 billion includes FEED and pre-FEED studies, which are essential for determining the feasibility of reaching an FID [5] - The development of the Aphrodite gas field is expected to benefit both the national and eastern Mediterranean regions, aligning with Chevron's strategy for greener energy [6] Project Timeline - Production from the Aphrodite gas field is estimated to begin in 2031, located approximately 160 km south of Limassol at a water depth of 1,700 meters [7]