Noble Energy Inc. (NYSE: NBL) has sold a 35% stake of Cyprus's Block 12, which includes the Aphrodite field, to BG for $165 million. Noble Energy remains with a 35% stake while Israeli company Delek Group Ltd. (TASE: DLEKG) owns the remaining 30%.
Aphrodite, discovered in 2011, has gross mean natural gas resources of approximately four trillion cubic feet TCF). The transaction has an effective date of April 1, 2015, and is expected to close before the end of 2015. Noble Energy will maintain operatorship of Block 12.
The sale has raised expectations for future cooperation between Israel, Egypt and Cyprus on gas exports. BG owns a gas liquefying plant in Egypt and the Leviathan partners - Noble Energy, Delek and Ratio have already signed a letter of intent to sell gas to BG.
Noble Energy’s SVP Eastern Mediterranean J. Keith Elliott said, “Entering this upstream partnership with BG in our Cyprus discovery is an important step in moving the project forward for development. BG brings substantial technical, financial and marketing capacity to the partnership. 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. We are continuing to work with the government of Cyprus to finalize Aphrodite development plans. In conjunction with that work, we have recently commenced gas marketing efforts, primarily targeting customers in Egypt, including both domestic purchasers and underutilized liquefied natural gas (LNG) plants.”
As previously announced by Delek, Noble Energy also confirmed the sale of its 47% stake interest in Israeli licenses offshore Karish and Tanin for $73 million, as required by the Israel Antitrust Authority.
BG's acquisition of a 35% stake in the Aphrodite field will be a further incentive for Israel and Cyprus to complete their unitization agreement. The agreement has been held up by disputes on how much of the Aphrodite license extends into Israeli waters.
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2015
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