The Chevron Corp-led Aphrodite consortium and the Egyptian government have reached an agreement on a special tax regime for a project that will allow the export of 100 percent of production from the offshore Cyprus field to Egypt. The Fiscal Regime Agreement (FRA) provides tax exemptions for the sale of gas to Egypt's state-owned EGAS, excluding income tax. The agreement is pending signatures and parliamentary ratification, with NewMed Energy expecting the process to be completed within weeks. The Host Government Agreement (HGA) also outlines the construction of a pipeline to transport the gas and the formation of a special purpose company, AMC, in Egypt.
October 27, 2026
Egypt Offers Tax Breaks for Cyprus Gas Import Project
Egypt and the Aphrodite consortium agree on tax relief for gas exports to Egypt, a key step in the project's development.
Impact
The tax relief and ongoing agreements could accelerate the development of the Cyprus gas project, enhancing its viability for regional energy supply.