Chevron Submits an Updated Development Plan for Aphrodite Field

Chevron Corporation CVX has submitted an updated development plan to the government of Cyprus for the Aphrodite gas field located in the Mediterranean Sea. The company had initially submitted the details of the plan in July 2022. A few months later, it planned to proceed with an investment of $192 million to cover the project’s expenses. In May 2023, CVX had submitted an updated development plan, which was rejected by the government in August 2023.Details of CVX’s Revised Development PlanThe company has submitted a new updated plan for the development of the Aphrodite natural gas field at the end of August 2024. The plan involves the drilling of four new subsea wells in the initial phase. These wells will be connected back to a floating production unit (FPU). The FPU, which will be positioned over the field, is expected to have a production capacity of 800 million cubic feet per day (MMcf/d). CVX estimated the cost of the updated plan to be $4 billion prior to completing the front-end engineering design (FEED) study and assessing the project’s technical and economic feasibility.The natural gas extracted from the field will be exported through a subsea pipeline connected to the Egyptian transmission system. However, Chevron's partner, NewMed Energy has stated that there is no certainty whether the new plan will receive the approval of the government of Cyprus or it will be approved on certain conditions.Discovery of the Aphrodite Field The Aphrodite gas field was discovered by Noble Energy in September 2011 while drilling the A-1 well. The discovery was appraised with the A-2 well in 2013. The gas field is situated in Block 12 offshore Cyprus at water depths of 1,700 metres. It lies 160 km south of the city of Limassol and 30 kilometers toward the northwest of the Leviathan field, which is located in Israeli waters.The A-2 appraisal well confirmed that the Aphrodite field is estimated to have approximately 98 billion cubic meters of gas (Bcm) of contingent resources. Further, the field may potentially contain 26 Bcm of additional resources.Chevron is the operator of the block, holding a 35% stake. Its partners in the block are Shell plc and NewMed Energy, holding a 35% and 30% stake, respectively. In November 2019, the government of Cyprus had granted the partners in Block 12 a production license for 25 years, with a provision of extending it by another 10 years.CVX’s Zacks Rank and Key PicksCurrently, CVX carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the energy sector are Eni S.p.A E, MPLX LP MPLX and VAALCO Energy EGY. Eni presently sports a Zacks Rank #1 (Strong Buy), while MPLX and VAALCO Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Eni is a leading global integrated energy company with a focus on liquefied natural gas businesses. As natural gas has a lesser carbon footprint compared with other fossil fuels, it should play an important role in the global energy transition process. Eni’s participation in the natural gas market should allow it to capitalize on the mounting global demand in the future.MPLX LP owns and operates a wide range of midstream assets. The partnership's midstream assets include oil and natural gas gathering systems and transportation pipelines for crude, natural gas and refined petroleum products. MPLX is least exposed to commodity price fluctuations as it generates stable fee-based revenues. Furthermore, it surpasses its industry peers in terms of distribution yield, reflecting its commitment to returning capital to its unitholders.VAALCO Energy is an independent energy company involved in upstream business operations with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Eni SpA (E): Free Stock Analysis Report Vaalco Energy Inc (EGY): Free Stock Analysis Report MPLX LP (MPLX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks