Arab Finance: The Ministry of Petroleum and Mineral Resources and US-based energy company Chevron initialed a fiscal framework agreement to advance the development of Cyprus’s Aphrodite gas field and connect it to Egyptian infrastructure, as per a statement.

The agreement was signed by Mohamed El-Bagoury, head of the ministry’s Central Administration for Legal Affairs, and Javier La Rosa, Chevron’s President of Base Assets and Emerging Countries.

Egyptian Minister of Petroleum and Mineral Resources Karim Badawi and Cypriot Minister of Energy, Commerce and Industry Michael Damianos witnessed the initialing at the Mediterranean Offshore Conference and Exhibition (MOC 2026), taking place at the Bibliotheca Alexandrina from October 20 to 22.

The agreement contributes to completing the financial, commercial, and regulatory arrangements needed to move the project forward and accelerate the transport of Aphrodite gas to Egypt.

The planned connection would use Egypt’s existing facilities to receive, process, and liquefy the gas, allowing supplies to reach domestic and international markets according to demand and the project’s commercial viability.

By linking Cypriot resources with Egyptian infrastructure, the project aims to deepen integration between the two countries’ natural gas sectors and increase the economic returns from Eastern Mediterranean discoveries. It would also support Egypt’s role as a regional natural gas trading hub.

The ministry said progress on the project’s regulatory framework reflected continued cooperation between Egypt, Cyprus, and international companies to turn regional opportunities into projects, improve resource utilization, and encourage investment.

Separately, Italy-based engineering company Saipem and Egypt-based drilling services provider Modern Drilling Company (MDC) signed a memorandum of understanding (MoU) to expand cooperation in oil and gas activities.

Badawi witnessed the signing by Saipem CEO Alessandro Puliti and MDC Chairman and Managing Director Tamer Salah.

The MoU provides a basis for the companies to combine their expertise, technical capabilities, and technology resources to support joint ventures and projects. It also seeks to broaden partnership opportunities and facilitate technical and technological knowledge exchange, expanding cooperation between Egyptian companies and specialized international firms.

Both agreements fall within MOC’s focus on strengthening international partnerships, advancing joint oil and gas projects, and attracting investment that increases the economic value of energy resources while supporting expertise and technology transfer.