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Roundup: British Gas bids for 35 pct stake in Noble Energy's Cyprus concession

Xinhua, November 24, 2015 Adjust font size:

Noble Energy made a request to the Cypriot government to sell to British Gas (BG) 35 percent of its energy rights in block 12 of the Cyprus exclusive offshore economic zone, Energy Minister Yiorgos Lakkotrypis said on Monday.

The rights include the Aphrodite gas field which contains an estimated 4.5 trillion cubic feet of natural gas.

"Noble Energy proposes to remain operator of the offshore filed, with Noble Energy and BG holding 35 percent each and Israel's Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership holding 15 percent each," Lakkotrypis said after briefing Cypriot President Nicos Anastasiades on the request.

He added the request requires approval by the Cypriot government and it will be submitted to the Council of Ministers for discussion.

Lakkotrypis welcomed the request, however, saying was a very significant development "which indicates a vote of confidence in Cyprus' Exclusive Economic Zone (EEZ) and its prospects, from a company with huge technical and commercial-economic potential."

British multinational BG Group announced the deal in London and New York Stock Exchange markets, saying it had taken a 35 percent holding in Block 12 offshore Cyprus which includes the Aphrodite gas discovery.

"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 metric tonnes per annum," a company press release said.

Cypriot gas piped to the terminals would be primarily destined for re-export to Europe. But according to Lakkotrypis, some of the gas would be taken up by the Egyptian domestic market.

The minister said Noble Energy had long sought to farm out part of its interest in Block 12, in order to spread out the capital investment risk.

Investment for developing the Aphrodite field is estimated at between 2 billion and 3 billion euros, he added.

Meanwhile, the chairman of French oil and gas giant Total is due to meet with President Nicos Anastasiades and top officials in Nicosia on Tuesday.

Total is reported to be keen on having its concession on offshore Block 11 renewed, after it failed to carry out a drill within its prescribed time period.

Its revived interest comes from the proximity of Block 11 to the Egyptian Zohr gas field which is estimated to hold 30 trillion cubic feet of natural gas. Endit