A handout picture provided by the Cypriot government's Press and Information Office (PIO) shows Cyprus' Minister Energy, Commerce, and Industry Natasa Pilides (2nd-R) meeting with the Israeli Energy Minister Karine Elharrar (2nd-L) in the capital Nicosia on September 19, 2022. (Photo by various sources / AFP)
Nicosia – Cyprus and Israel agreed Monday to resolve a long-running dispute on the exploitation of a natural gas reservoir that straddles the maritime boundaries of both countries, energy ministers said.
The Cypriot Aphrodite field and Israel's Yishai gas field expand across the maritime territory claimed by both countries in the eastern Mediterranean.
Israeli Energy Minister Karine Elharrar held talks in Nicosia with her Cypriot counterpart, Natasa Pilides, to end the decade-long disagreement. The energy ministers "agreed on the continuation of the constructive process followed for the Aphrodite and Yishai deposits issue for a fair and speedy resolution," the two ministries said in a joint statement.
Working groups made progress and "both sides expressed optimism about the chances of a settlement and encouraged the companies involved to continue their dialogue," the statement continued.
Due to the global energy crisis and Europe's growing gas needs, "it is in our best interest for both sides to expedite their work for a swift, transparent and fair settlement," said Elharrar.
Aphrodite — licensed to US firm Chevron, British firm Shell, and Israeli partners — was discovered in 2011 and is estimated to hold around 4.5 trillion cubic feet of natural gas. A small portion of the field extends into the Yishai license in the Israeli exclusive economic zone, an obstacle complicating its development.
In March 2021, Cypriot and Israeli energy ministries agreed to give the partners in Aphrodite and Yishai a year to conduct direct negotiations or refer the matter to an international expert, if needed. Over a year later, no agreement has been reached between the companies.
"Cyprus and Israel share the common vision of fully exploiting the potential of the natural gas reserves of the eastern Mediterranean, thus diversifying the sources and routes of energy to Europe," said Pilides.
Israel and Cyprus signed an agreement to set the border between their exclusive economic waters in 2010, but no agreement was signed to arrange the commercial development of the gas reservoirs.
The Israeli side of Aphrodite-Yishai is estimated to contain 10 to 12 billion cubic meters (bcm) of natural gas, less than the Leviathan gas field, which contains an estimated 605 bcm.