Cyprus and Israel fail to resolve offshore gas field dispute

On Wednesday evening, October 14, 2026, technical and legal experts from Cyprus and Israel held online negotiations regarding the shared gas reservoirs of Aphrodite, located in Cyprus's block 12, and Yishai, situated in Israel's Exclusive Economic Zone. The talks failed to reach a final agreement, with both sides intending to reconvene in the near future to continue deliberations. The primary point of contention remains the geological intersection of the two reservoirs, a long-standing issue involving the American operator Chevron, which manages the Aphrodite field.

Simultaneously, the Aphrodite project faces internal friction between the Republic of Cyprus and its corporate partners. According to the Middle East Economic Survey (MEES), a disagreement has emerged over proposed transit fees for exporting gas through Egyptian waters. Chevron and its partners have reportedly suggested a fee of approximately $3 per million British thermal units, an increase that Cyprus views as excessive. This pricing dispute threatens the project's profitability and potentially jeopardizes the timeline for a final investment decision scheduled for 2027.