Chevron, Egypt Ink Fiscal Agreement for Aphrodite Gas Project
October 21, 2026
Egypt and Chevron have signed an agreement establishing the fiscal framework for developing and connecting Cyprus’ offshore Aphrodite gas to Egyptian gas infrastructure, marking another step towards transporting gas from the Eastern Mediterranean field to Egypt.
The agreement, signed on October 20, forms part of efforts to finalize the financial, commercial and regulatory arrangements needed to advance the Aphrodite development and its connection to Egyptian gas facilities.
It forms part of efforts to finalize the financial, commercial and regulatory arrangements needed to advance the Aphrodite development and its connection to Egyptian gas facilities.
Under the proposed development, gas from Aphrodite would be transported to Egypt for domestic consumption or processing and liquefaction for export, depending on market demand and project economics.
The agreement was initialled by Mohamed El-Bagoury, head of the Egyptian petroleum ministry's Central Administration for Legal Affairs, and Javier La Rosa, Chevron's President of Base Assets and Emerging Countries.
Chevron operates the Aphrodite field with a 35% interest, alongside Shell with 35% and Israel's NewMed Energy with 30%.
To remind, Shell agreed in July to sell its Cyprus subsidiary, including its interest in Aphrodite, to Hungary's MOL, subject to regulatory approvals and other closing conditions.
The latest agreement follows a 15-year binding term sheet signed in April between Aphrodite's partners and Egyptian Natural Gas Holding Company for the sale of all recoverable gas from the field.
Egypt and Cyprus also signed a broader gas cooperation framework agreement in March to facilitate the transportation of Cypriot gas to Egyptian infrastructure.
Saipem, Modern Drilling Sign Cooperation MoU
Separately, Italian engineering company Saipem and Egypt's Modern Drilling Company (MDC) signed a memorandum of understanding to explore cooperation in oil and gas activities.
The agreement, also signed during MOC 2026, covers potential joint operations and projects, alongside the exchange of technical expertise and technology.
It was signed by Saipem CEO Alessandro Puliti and MDC Chairman and Managing Director Tamer Salah, with Egyptian Petroleum Minister Karim Badawi attending the ceremony.
