Cyprus’ first natural gas extraction will most likely be from the Kronos reservoir in block 6, which may be in 2027, Energy Minister George Papanastasiou said in an interview to Kathimerini published on Sunday.
He also shared that in early 2025, ExxonMobil will begin drilling an exploratory well in the Electra site in Block 5 and a well in the Glaucus site in block 10.
As for Aphrodite, Papanastasiou said Chevron has submitted a preliminary development plan, which seems to be in the intended direction. “The aim is to complete the plan within four months and there should be no surprises down the road.”
The minister specified President Nikos Christodoulides has committed to Cyprus’ participation in the electricity interconnection with Greece, provided there is a due diligence study set to be undertaken soon.
Asked if the relations between Cyprus and Greece were tested as a result of the project, Papanastasiou said the two countries had a strong relationship which could not be shaken over one project, no matter how significant.
The project was originally estimated at €1.5 billion, but was adjusted to €1.9 billion due to an increase in the cost of the cable construction materials, due to the war in Ukraine, he specified.
Papanastasiou added that the final cost will be determined by the contracts and noted that the one contract of €1.4 billion, which is the largest, has a plus or minus margin of 5 per cent, which the company believes it can deliver. He explained that if there is a need for an extension beyond 5 per cent the implementer would have to report to the regulators to justify this and claim the increase.
The project is set to be finished by the end of 2029, the minister said. He explained that the Republic of Cyprus has undertaken to pay €25 million per year, capping at €125 million at the end of the five years of construction. He also noted that “Cypriot consumers will start paying for the interconnection when they see the benefit of its operation.”
As for taking the geopolitical risk, he noted that the geopolitical risks of the project are manageable, stressed that the project is European and expressed confidence that it will be implemented as planned.
He explained that the risk is managed through operational, financial and diplomatic means, adding that operational means are mobilised by countries that have the capacity. However, he stressed the importance of economic instruments, saying that “states that have economic and/or geopolitical interest through investment funds can also have an operational presence and ensure the implementation of the project.”
