The Republic of Cyprus expects revenues that could reach as high as billions of euros from the development of the “Kronos” field, according to Energy Minister Michalis Damianos. Speaking on the Alpha News program, he presented the timelines for the exploitation of Cyprus’s gas fields, as well as the outstanding issues regarding “Aphrodite.”
Referring to “Kronos,” the Minister explained that the final investment decision by the ENI–TotalEnergies consortium was made in late July 2026, while the contracts with eight subcontractors, totaling approximately $1.8 billion, mark the start of construction of the necessary infrastructure. The goal is for the first natural gas from the Cypriot EEZ to be piped to Egypt during the first half of 2028, via the Zohr field, bound for European markets. As he clarified, the companies are covering the investment costs without any upfront contribution from the Republic of Cyprus. “The companies bear all the risk,” he noted.
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Regarding government revenue, Mr. Damianos stated that the first collections are likely to begin in 2028 or 2029, with the amounts increasing gradually. He explained that the distribution of revenues depends on the recovery of investment costs, the volume of natural gas that can technically be extracted, and prices on international markets. Given that “Kronos” has estimated reserves of approximately three trillion cubic feet (TCF), the total economic benefit for the state could amount to hundreds of millions or even several billion, although this cannot be determined with precision at this time.
For the “Aphrodite” field, production is scheduled to begin in 2031, while for the “Glafkos” and “Pegasus” fields in 2033, with the Minister estimating that their larger reserves could generate significantly higher revenues. However, regarding “Aphrodite,” he revealed that Chevron has raised new demands, primarily concerning increased development costs, which the Republic of Cyprus does not accept at this stage. The issue is being examined at the technical level, with the aim of concluding the consultations by the end of November.
At the same time, the agreement with Israel regarding the “Isaï” cross-border gas field remains open, with Mr. Damianos noting that legal consultations were recently held in London. “We would have liked to have finalized the matter before the elections. Unfortunately, we haven’t managed to do so,” he said, adding that the settlement is a prerequisite for the smooth development of “Aphrodite.” “We believe we are very close,” he said, expressing hope that the agreement will be finalized before the end of 2026.
Finally, the Minister emphasized that the exploitation of Cyprus’s reserves will span decades, with production likely to continue even beyond 2040. In this context, he announced that updated regulations for the Hydrocarbons Fund would be submitted by 2027, so that future government revenues can be utilized for the benefit of future generations.
