Negotiations between Cyprus and Israel regarding the rights to natural gas under the eastern Mediterranean seabed have reached a very advanced stage, Energy Minister Michael Damianos announced on Tuesday. Key commercial terms have been agreed upon during recent talks, though some legal issues remain unresolved. Officials are optimistic these matters will be closed soon.

The dispute centers on the Aphrodite gas field in Cyprus’ Block 12, adjacent to Israel’s exclusive economic zone. Israel claims up to 10% of the field’s gas may originate from its neighboring Yishai field, potentially worth over €1 billion. Previous attempts to finalize an agreement faced delays due to regional conflicts involving Israel and neighboring countries.

Following the anticipated resolution of these issues, Cyprus expects major energy companies including Chevron, NewMed Energy, and Shell’s BG Group to proceed with a final investment decision next year. Seabed surveys have been underway since June 2023 to determine pipeline routes for transporting gas to Egypt’s LNG terminal in Damietta.