Noble Energy Inc. (NYSE: NBL) may quit the Cypriot oil and gas exploration market, industry sources believe, after it unexpectedly decided not to bid for new offshore licenses on Friday. Until a few days ago, the company said that it intended to bid in the tenders.
Noble Energy owns 70% of the rights to the Aphrodite reservoir (Block 12), and Delek Group Ltd. (TASE: DLEKG) owns 30%. However, Block 12's discovery is not enough for the construction of liquefied natural gas (LNG) infrastructures for exports. Assuming that this is a change in the company's strategy, it means forgoing Cyprus's LNG facility project and selling the company's stake in Aphrodite.
Noble Energy said in response that the interpretation was overblown, and that its decision not to bid in the new tenders was because it wants to focus on developing its current holdings at Block 12 and bring the project to fruition.
15 companies, including several Israeli companies participated in the Cypriot government's tender for 12 oil and gas exploration licenses in its exclusive economic zone. The most prominent Israeli participant is Yitzhak Tshuva-controlled Delek, which submitted as part of a consortium with oil majors.
Delek's gas exploration units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L). The companies are part of a consortium with Italy's Enel Trade SpA, France's EDF SA (Euronext: EDF) subsidiary Edison International SpA, and Australia's Woodside Energy Holdings Pty Ltd. Woodside and Edison International each own 30% of the consortium, Enel owns 15%, and Avner and Delek Drilling each own 12.5%.
Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2012
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