With reference to  the Aphrodite natural gas reservoir which was discovered in Block 12 in the EEZ of Cyprus, the Partnership reports that on 14 February 2025, the Cypriot government approved the Reservoir’s Updated Development Plan, and concurrently an amendment was signed to the Production Sharing Contract that was signed with the Cypriot government (the “PSC”), which regulates updated milestones for development of the Reservoir and revokes the notice of breach that was issued to the partners in the Reservoir.

Further details in connection with the issues:

1. On 25 August 2024, a notice of breach was received from the Minister of Energy of the Cypriot government in connection with the Partners’ non-compliance with the milestone for the performance of Front-End Engineering Design (FEED) which was determined in the PSC. With the aim of enabling the parties to hold discussions in connection with approval of an updated development plan for the Reservoir and an update to the milestones for development thereof, on 17 September 2024, a standstill agreement was signed between the parties for an agreed period.

2. During the Standstill Period, discussions were held between the Partners and the Cypriot government, in the context of which the Partners presented the Cypriot government with the main principles of the Reservoir’s updated development plan, which was prepared based on the development plan that was approved by the Cypriot government in 201. The Updated Development Plan includes the construction of a floating independent production facility above the Reservoir, with an estimated maximum production capacity of approx. 800 MMCF per day, through 4 producing wells at the initial stage, from which the natural gas will be piped to Egypt via a subsea pipeline that will be connected to the Egyptian transmission system. 

3. On 14 February 2025, the Cypriot government approved the Updated Development Plan and the revocation of the Notice of Breach. Concurrently, an amendment was signed between the Partners and the Cypriot government to the PSC, in the context of which the Partners undertook, inter alia, to adopt a final investment decision (FID) in 2027.

4. According to a current estimate of the operator in the Reservoir, Chevron Cyprus Limited (the “Operator”), before completion of technical-economic feasibility studies, including performance of the front-end engineering design (FEED) and pre-FEED, the estimated cost of the Updated Development Plan is estimated at $4 billion (100%). It is emphasized that execution of the Updated Development Plan and reaching the adoption of an FID are contingent, inter alia, on performance of the pre-FEED and the FEED and the results thereof, on the formulation of commercial arrangements for the development and construction of the pipeline for export, on the signing of agreements for the supply of natural gas and on fulfillment of the closing conditions of such agreements, on receipt of regulatory approvals and on the finalization of financing arrangements. Insofar as the foregoing conditions precedent are fulfilled, the supply of natural gas from the Reservoir is expected to commence in 2031.