Chevron and Shell Given Three Months by Cyprus to Solve Gas Contract Breaches

Cyprus has warned Shell and Chevron they have less than three months to solve breaches of their contract on gas exploration.

The warning comes after the companies failed to meet a deadline to submit updated work programs and budgets.

Cyprus entered into agreements with Shell and Chevron in 2019 to explore for natural gas in two offshore blocks.

The companies were supposed to submit work programs and budgets by the end of 2022, but they missed the deadline.

The Cypriot government has now given them until the end of March to submit the required documents.

• If they fail to do so, their licenses could be revoked.
• The government is also considering imposing fines on the companies.

The Cypriot government is keen to develop its natural gas resources as it seeks to reduce its dependence on imported energy.

The country has already exported some gas to Egypt and is planning to build a liquefied natural gas (LNG) terminal to export gas to other countries in Europe.

The government is also hoping to use its gas resources to develop a hydrogen economy.

Cyprus is not the only country that has taken action against oil and gas companies for breaching their contracts.

In recent years, several other countries, including Norway and the United Kingdom, have taken similar action.

This shows that governments are increasingly willing to hold oil and gas companies accountable for their actions.

The action taken by Cyprus is likely to send a strong message to other oil and gas companies that they need to comply with their contractual obligations.