Noble Energy Inc. (NYSE: NBL) will begin drilling for natural gas at Cyprus's offshore Block 12 by October 1, Energy Service director Solon Kassinis told "Cyprus Mail" today.
Block 12, located in Cyprus's Exclusive Economic Zone, is near Israel's Leviathan license in which Noble Energy is partner, together with Delek Group Ltd. (TASE: DLEKG) and Ratio Oil Exploration (1992) LP (TASE:RATI.L). Delek Group subsidiary Delek Energy Systems Ltd. (TASE: DLEN) has an option to acquire 30% of Block 12.
Cyprus has signed a production-sharing contract with Noble Energy, which has a concession to explore for hydrocarbons in Block 12. Kassinis said that Cyprus should obtain a clear view of the size of its hydrocarbons reserves in the block in about two months after the start of drilling. The government will then proceed with a second round of licensing for other blocks in the region.
Kassinis said that Noble Energy was contractually obliged to start drilling on or before October 1. "The rig is in our region. It’s now drilling in Israel’s (offshore field) Noa and will reach our area at the end of September or early October,” he said.
Kassanis told "Cyprus Mail" that during his recent trip to Israel, he met with various ministries and presented his thoughts on the potential collaboration between the two countries. “It appeared there was a very positive spirit. I believe that very soon we will have more meetings to finalize these matters," he said.
The paper says, "A lot of unconfirmed reports have been floating about concerning cooperation between Israel, Cyprus and Greece for both the provisional supply of natural gas to Cyprus as well as use of Cyprus as a transit point for Israeli gas heading towards Europe."
Published by Globes [online], Israel business news - www.globes-online.com - on August 3, 2011
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