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Noble and BG International sign agreement over Block 12 offshore Cyprus

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LNG Industry,

Noble Energy Inc. has confirmed that a farm-out agreement for a section of its interest in Block 12 offshore Cyprus with BG International has been made. BG will acquire 35% interest in the block for a sum of US$165 million. This will also include the Aphrodite natural gas discovery, which was discovered in 2011 and has gross mean natural gas resources of approximately 4 trillion m3.

The Senior Vice President of Eastern Mediterranean at Noble, 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 finalise 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 underutilised LNG plants.”

Furthermore, Noble has also announced that it has agreed to sell its 47% interest in the Alon A and Alon C licences offshore Israel to a the Delek Group. The deal is valued at US$73 million and will include the sale of the Tanin and Karish fields. The divestment interest in these assets signifies an important step in satisfying Noble’s obligations under the recent regulatory framework in Israel. It will also simplify the Tanin and Karish sale to a third party. The execution of both of the transactions will be subject to regulatory approvals, as well as formal adjustments and closing conditions.

Edited from press release by David Rowlands

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