BG Group secured 35% stake from Houston-based Noble Energy in Block 12 offshore Cyprus in a US$165 million farm out deal, which gives the UK deepwater and LNG focused company a piece of the Aphrodite natural gas discovery.
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Map of Cyprus. From Noble. |
“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,” BG Group said in a statement.
By entering the partnership with BG, Noble says it marks an important step in moving the development of the project forward.
"Entering this upstream partnership with BG in our Cyprus discovery is an 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,” J. Keith Elliott, Noble senior VP of Eastern Mediterranean said.
The deal still needs to pass certain regulatory approvals, in addition to customary closing conditions.
“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," Elliott said.
Should the deal be approved, partners in Block 12 will be operator Noble Energy (35%), BG (35%), Delek Drilling (15%), and Avner Oil Exploration (15%).
The Noble Energy-operated Aphrodite, Cyprus’s first offshore natural gas discovery, is located in the Eastern Mediterranean sea, about 170km south of Limassol. It is estimated to hold gross mean resources of 4.5 Tcf of gas, with multiple high-quality pays in the Miocene sand intervals.
Aphrodite was deemed commercial in June 2015. It covers approximately 2684sq km, and about 636,000 gross undeveloped acres adjacent to Noble’s Israel acreage.
In Q2 2015, Noble submitted the Declaration of Commerciality and Preliminary Development Plan for Aphrodite. Noble said in the report that the partners were beginning regional gas marketing of the Aphrodite resource and performing pre-FEED work for a potential development connecting the Aphrodite field to natural gas customers in Egypt.
In June, Delek proposed a US$155 million agreement to acquire 19.9% from Noble in Block 12, however no deal was made.
Delek deal offshore Israel
In addition, Noble also entered into a $73 million agreement with the Delek Group, in which the Houston-based company is set to sell 47% in the Alon A and Alon C licenses offshore Israel, which contain the Tanin and Karish fields.
"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.
The deal is subject to regulatory approvals and customary closing conditions and adjustments.
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