Worley Lands Chevron FEED Contract for Cyprus’ First Offshore Gas Development
Worley Limited (ASX: WOR) has been selected by Chevron Cyprus Limited to deliver Front End Engineering Design (FEED) and procurement services for the Aphrodite Field Development Project, located offshore Cyprus in the Eastern Mediterranean. The reimbursable contract covers Cyprus’ first offshore gas development, with FEED completion targeted for December 2026 and first gas expected in 2032.
The contract builds on Worley’s pre-FEED and bridging phase work completed during 2025, marking a continuation of the company’s relationship with Chevron Cyprus Limited, a subsidiary of Chevron Corporation.
Worley secures Chevron FEED contract for Cyprus’ first offshore gas development
Worley will execute the FEED phase under a reimbursable engineering and procurement contract structure. This commercial framework provides margin protection during project development, as costs are recovered from the client with an agreed fee structure rather than a fixed-price arrangement.
The Aphrodite Field Development Project represents a nation-building milestone for Cyprus as its first offshore gas development. Worley’s selection demonstrates the company’s ability to convert early-stage advisory work into larger FEED engagements, having already delivered the initial pre-FEED studies and bridging work in 2025.
The reimbursable contract model reduces execution risk for Worley during this detailed engineering phase. Investors typically view reimbursable structures favourably during volatile project phases, as they protect margins against scope changes and unforeseen technical challenges common in greenfield offshore gas developments.
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Full-field development scope spanning subsea to shore
Worley will provide FEED engineering across the complete Aphrodite Field development infrastructure. The comprehensive scope demonstrates deeper client integration compared to point-solution competitors who might only deliver subsea or onshore components.
The engineering scope includes:
- Subsea systems
- Floating production unit
- Export gas pipeline
- Onshore receiving facilities
Beyond engineering, Worley will provide procurement services for equipment associated with the floating production unit and onshore facilities. This procurement component creates additional revenue streams beyond pure engineering fees, enhancing the overall contract value.
The integrated nature of the scope positions Worley as a strategic partner rather than a specialist contractor. Companies delivering full-field FEED typically have stronger incumbency advantages when clients progress toward Final Investment Decision and subsequent construction phases.
What is FEED and why does it matter for project delivery?
Front End Engineering Design is the detailed blueprint phase that occurs before construction begins. During FEED, engineers develop comprehensive technical specifications, equipment lists, cost estimates, and execution plans that enable clients to make informed investment decisions.
FEED follows the pre-FEED phase, which Worley completed in 2025. After FEED completion in December 2026, Chevron Cyprus Limited will use these detailed designs to determine whether to proceed with a Final Investment Decision.
For Worley, successful FEED completion positions the company favourably for potential Engineering, Procurement, and Construction Management (EPCM) work if the project advances to execution. FEED providers often retain incumbency advantages for downstream construction contracts, as they possess detailed knowledge of the project’s technical requirements and design basis.
If Worley secures follow-on work, the company could maintain project involvement through to the 2032 first gas target, providing sustained revenue visibility across multiple contract phases.
Global Integrated Delivery model drives execution
Worley will execute the Aphrodite FEED through its Global Integrated Delivery model, leveraging expertise from teams across five countries. This approach enables the company to optimise costs by utilising lower-cost engineering centres whilst maintaining access to specialist talent pools for complex technical challenges.
The model represents a competitive differentiator in the engineering services sector, where clients increasingly demand cost efficiency without compromising technical quality. By distributing work across global centres, Worley can align engineering activities with time zones, specialist capabilities, and cost structures.
Chris Ashton, Chief Executive Officer
“We are pleased to continue our long‑standing relationship with Chevron, drawing on our global gas development expertise and Global Integrated Delivery model to support the progression of this strategically important energy project.”
The statement emphasises Worley’s existing relationship with Chevron, one of the company’s major global clients. Long-standing client relationships typically correlate with higher win rates on new opportunities and smoother project execution due to established working protocols and trust.
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Strategic context for Worley’s gas development pipeline
The Aphrodite contract win strengthens Worley’s positioning in global gas infrastructure development. The Eastern Mediterranean region has become increasingly strategic for European energy security, particularly following the 2022 disruption to Russian gas supplies.
Cyprus’ first offshore gas development aligns with European priorities to diversify energy sources. The project will contribute to regional gas supply, supporting energy transition goals whilst providing the baseload energy required during the shift toward renewable sources.
The project timeline provides Worley with sustained workload visibility through to 2032 first gas. Long-dated project pipelines support revenue forecasting in the company’s energy segment, particularly as FEED completion could lead to additional construction-phase contracts.
| Milestone | Target Date |
|---|---|
| Pre-FEED completion | 2025 |
| FEED completion | December 2026 |
| First gas | 2032 |
What’s next for the Aphrodite development
Following FEED completion in December 2026, Chevron Cyprus Limited will evaluate the detailed engineering and cost estimates to determine whether to proceed with a Final Investment Decision. A positive FID would trigger the execution phase, potentially including construction, installation, and commissioning activities extending through to 2032.
Successful FEED execution could position Worley for follow-on engineering and construction support roles. Investors should monitor FEED completion as a leading indicator for potential contract expansion opportunities.
If the project advances to execution and Worley retains involvement through construction phases, the 2032 first gas target provides multi-year earnings contribution potential within the company’s industrials segment.
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