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Noble Energy, BG worldwide to partner in gas field offshore Cyprus
Posted On Nov 24 2015
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BG Group secured 35% stake from Houston-based Noble Energy in Block 12 offshore Cyprus in a US$165 million farm out deal, which gives the United Kingdom deepwater and LNG focused company a piece of the Aphrodite natural gas discovery.
Noble will maintain operatorship of Block 12 with a 35% interest.
Located 170km south of capital Limassol, Aphrodite gas field was discovered in 2011 and has an estimated gas reserve of around four trillion cubic feet.
“Moreover, it constitutes an alignment of upstream and midstream interests, as BG global…is part of the BG Group that holds equity in the LNG export facility at Idku, in Egypt”, it added. The transaction is effective as of 1 April 2015, and is anticipated to close before the end of 2015.
BG’s Egypt gas processing plant can liquefy the fossil fuel for transport by ship to markets that could include Europe.
A move by British oil and gas company BG worldwide to buy a stake in Cyprus’ offshore mineral deposits is an important step forward for the country’s plans to supply Egypt with natural gas, the east Mediterranean island’s energy minister said Monday. “Their longstanding presence and experience in the region are great complements to our own, and we are confident our combined strengths will enhance the value of Block 12”, J. Keith Elliott, Noble senior VP of Eastern Mediterranean said.
The agreement is “an important step towards Aphrodite’s development”, the Cyprus government said in an e-mail.
Invited to say on what criteria has ENI, which also has an LNG in Egypt, been excluded, Lakkotrypis said that no company has been excluded, adding that “discussions take place both with the two LNGs and for Egypt’s domestic market”.
Furthermore, Noble has also announced that it has agreed to sell its 47% interest in the Alon A and Alon C licences offshore Israel to a the Delek Group.
The completion of both transactions are subject to certain regulatory approvals as well as customary closing conditions and adjustments.
