Yiorgos Lakkotrypis said USA company Noble Energy has cut a deal with BG global for a 35 percent stake in an area, or block, where a field estimated to contain more than 4 trillion cubic feet of gas has been found.
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“The ministry of energy announces that it has received, today, a request from Noble Energy global for a farm-out agreement with BG worldwide, for a portion of its interest in Block 12 offshore Cyprus”, said a statement.
Noble has shrugged off criticism that a massive natural gas discovery in Egypt by Italian oil company Eni could thwart its plans to sell gas pulled from the Eastern Mediterranean to Egypt and other customers in the region.
This upstream position provides a potential source of gas to Egypt where BG Group holds equity in the two train LNG export facility at Idku as well as LNG offtake rights to lift 3.6 mtpa. Noble will maintain a 35 percent interest and continue operating the project.
“BG brings substantial technical, financial and marketing capacity to the partnership”, J. Keith Elliott, Noble Energy’s senior vice president of Eastern Mediterranean, said.
BG, one of the world’s biggest producers of LNG both onshore and offshore, has acquired its stake from operator Noble Energy.
The Aphrodite gas field, in Cyprus’ licence block 12, is located around 170 km (106 mi) south of Limassol.
The deal is expected to close before the end of the year pending regulatory approval. BG operates a gas processing plant in Egypt, according to Associated Press reports.
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“The divestment of interest in these assets is an important step in fulfilling Noble Energy’s obligations under the recently-approved Regulatory Framework in Israel and will simplify the ultimate sale of Tanin and Karish to a third party”, Noble said.
