The formulation of an intergovernmental agreement between Cyprus and Israel for the management of the Aphrodite-Yishai gas field is in the final stages, Energy Minister George Papanastasiou said on Wednesday.

He was speaking at the 13th Energy Symposium in Nicosia.

The minister said the text of the agreement was essentially complete and the final draft with comments from the Cypriot side was sent to Israel last week.

“The goal of the two energy ministers,” he said, “is to sign the agreement by the end of the year”. The minsters trashed out the basics of an agreement when they met in September after years of wrangling between the two governments.

Papanastasiou explained that the intergovernmental agreement under development will determine how to manage the small part of the Aphrodite field that extends into Israel’s Yishai block and concerns quantities of natural gas that may be located within the Israeli EEZ.

He said the process would essentially lay out a mechanism for compensating the owners of the Israeli side.

Last February, Chevron, Egypt and Cyprus signed a non-binding Memorandum of Understanding agreeing export of block 12 Aphrodite’s 3.5tcf gas to Egypt to be liquefied the Damietta plant

This deal was followed by conclusion of the negotiations between Cyprus and Chevron on the development plan (FDP) for the gas field, estimated to cost $4billion. It envisages production of 800million ft3/day through four wells using a floating production unit (FPU) to export the gas to Egypt.

If everything goes to plan, gas exports could start in 2031 and Cyprus would see income from the project in 2034-2035.