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Israeli Delegation to Finalize Aphrodite-Isai Gas Deal in Cyprus

Published January 20, 2026, 06:18
Israeli Delegation to Finalize Aphrodite-Isai Gas Deal in Cyprus

An Israeli delegation is expected in Nicosia this week to finalize an agreement for the joint development of the Aphrodite-Isai cross-border natural gas reservoir. The agreement, which has been under discussion since 2011, aims to resolve disputes regarding the management and distribution of revenues. Last month's trilateral meeting between Israel, Cyprus, and Greece provided significant impetus to the negotiations, with the Energy Ministers agreeing to expedite the procedures. According to Cypriot officials, the process is at an advanced stage and a framework agreement has been formed without major obstacles. The key to the agreement is the management of the 10% of the reservoir located in the Israeli Exclusive Economic Zone (EEZ) and the creation of a compensation mechanism for Israel. The proposed solution is a 'unitization' agreement, which will allow for joint development and maximize production. Israel proposes the joint selection of an independent expert to assess the geological data and the development plan, who will determine Israel's share and ensure appropriate compensation. The Aphrodite reservoir has estimated reserves of 129 billion cubic meters of natural gas and is located in Block 12 of the Cypriot EEZ. The revised development plan provides for the liquefaction of the gas in Egypt, at the Idku and Damietta terminals, and its export as LNG to international markets. Cyprus, as a small consumer of natural gas, primarily expects revenues from exports. The agreement is expected to be finalized and signed as early as February, provided the last procedural obstacles are overcome.