The revised contract for the ‘Aphrodite’ deposit has been signed after a long delay and at a heavy high cost for the people

Statement by the Head of the Energy Affairs Bureau of the C.C. of AKEL Lambros Lambrou

AKEL C.C. Press Office, 8th November 2019, Nicosia

We realise the difficulty that the government has fallen into. We don’t however understand how it thinks it can get out of this position by engaging in triumphant communication shows exploiting the signature of the revised contract for the license to exploit the “Aphrodite” deposit.

We don’t doubt that this represents a positive development. But it comes with a long delay and at a heavy cost for the Cypriot people.

Since 2012 when the deposit was confirmed until today when the agreement to develop it was announced 6 additional years will still be required until the first results of its development will begin to be produced.

In fact, profit percentages of profits for the Republic of Cyprus will be reduced, while profits for the Consortium companies will be higher!

The government’s estimate of $ 500m in revenues is, at best, arbitrary and over-optimistic.

To accurately calculate the relevant revenues dozens of studies need to be conducted, new confirmatory drillings are demanded and numerous technical issues must be solved before decisions for investments are taken. The profits will be a combination of many, unknown, parameters at present, starting with what the price of oil will be at that particular time.

Due to the policy the Government is pursuing, the possibility exists that we will sell natural gas from the “Aphrodite” deposit to Egypt at very low prices and that we will be buying natural gas for our own needs at much higher prices.

Let alone the fact that by pursuing this policy the prospect of establishing a Liquefied Natural Gas (LNG) terminal in Cyprus becomes ever more remote…