Israel and Cyprus Move Toward Agreement on Aphrodite-Ishi Gas Field
Delegation Set for Talks in Nicosia
A delegation from Israel’s Ministry of Energy and Infrastructure is scheduled to travel to Nicosia this week for discussions with their Cypriot counterparts concerning the Aphrodite-Ishi gas field. These talks aim to produce a draft agreement that resolves disputes surrounding the gas field, which have persisted since 2011, as first reported by Globes. The discussions are expected to focus on income-sharing assessments and overall operational collaboration.
Background on Aphrodite-Ishi
The Aphrodite-Ishi gas field, located in Block 12 off Cyprus, is about 30 kilometers from Israel’s Leviathan field. Approximately 90% of the field is situated within Cyprus’s Exclusive Economic Zstart (EEZ), with a small portion, known as the Ishi field, extending into Israeli waters. Estimates indicate the gas potential of the entire field stands at around 129 billion cubic meters (BCM). With Chevron holding a 35% interest alongside its partners, the collaboration and conversations about the gas field’s development have accelerated following a trilateral conference between Israel, Cyprus, and Greece held last month in Jerusalem.
Progress Toward Finalizing Agreement
According to a senior Cypriot official, “We are very close,” suggesting that a progressive framework for engagement has been established. There are no significant issues anticipated that could delay the process, allowing both sides to work towards resolving the remaining outstanding details. The goal is to finalize the agreement, with an expectation for signatures by February of the following year.
Israel’s Minister of Energy, Eli Cohen, and his Cypriot counterpart, Michalis Demetriou, emphasized the urgency of expediting negotiations and formalizing income distribution methodologies during their previous discussions.
Potential Economic Implications
The proposed agreement includes a plan for joint development of the Aphrodite-Ishi field to maximize output and economic potential. The agreement will also address the management of the small portion of the field located in Israeli waters, facilitating a compensation mechanism for Israel’s share.
Cyprus aims to establish a liquid natural gas (LNG) export program to enhance revenue, requiring collaboration with Egyptian President Abdel Fattah al-Sisi, who oversees two strategic LNG facilities. With economic ambitions in mind, the revised development plan presented in September anticipates starting production by 2031 at an estimated cost of $4 billion.
Regional Tensions and Turkish Considerations
As discussions progress, concerns regarding Turkey’s stance have arisen. Turkey, which does not recognize the maritime boundaries as defined by international law, is particularly sensitive regarding the situation in Cyprus following its invasion in 1974. Recent events, including Lebanon’s affirmation of its maritime borders with Cyprus, have drawn ire from Ankara, which continues to reject any recognition of Cypriot waters.
As regional dynamics shift, there are fears that Turkey may leverage its influence over Syria to secure a maritime border agreement that could further complicate the situation. Such a move could disrupt the ongoing negotiations and undermine Cyprus’s sovereignty.
The negotiations over Aphrodite-Ishi thus not only play a crucial role in enhancing energy resources for both Israel and Cyprus but also reflect broader geopolitical tensions in the Eastern Mediterranean region, where energy resources and territorial rights are increasingly contested.
In summary, continued diplomatic dialogues between Israel and Cyprus remain pivotal as they seek to finalize the agreement on the Aphrodite-Ishi gas field, fostering cooperation while also navigating the complexities posed by regional neighbors.