NewMed has agreed to sell all gas from the Kirp-Israeli Aphrodite field to Egypt.

The Israeli gas production company NewMed announced the conclusion of a memorandum to supply Egypt with all gas reserves from the Aphrodite field https://www.newsru.co.il/Ishai.

NewMed owns 30% of the rights to the field, the remaining 70% is owned equally by global oil and gas giants Chevron and Shell. The field is 90% located in the exclusive economic waters of Cyprus (Aphrodite) and approximately 10% in Israeli waters (Ishai).

Development of the deposit, discovered more than ten years ago, has not yet begun due to the inability of Israel and Cyprus to agree on the format for the distribution of rights, and the signing of the memorandum is a tool of pressure on both governments.

According to the terms of the memorandum, the agreement is valid for 15 years or until the completion of commercial production at the field, whichever comes first. The total gas reserves are 100 billion cubic meters, which is more than in the Israeli Karish and Tanin, but less than in Tamar or Leviatan.

The agreement will be implemented on a take-or-pay basis, meaning supplies will be fixed and Egypt will be required to pay even during periods when it does not need the entire contracted volume of gas. The price will be tied to the cost of a barrel of Brent oil.