Noble Energy and BG International agree to partnership in Block 12 offshore Cyprus

Noble Energy Inc. has reported a farm-out agreement for a portion of its interest in Block 12 offshore Cyprus with BG International (BG). BG is acquiring a 35% interest in Block 12, which includes the Aphrodite natural gas discovery, for total cash consideration of US$165 million. Aphrodite, discovered in 2011, has gross mean natural gas resources of approximately 4 trillion ft³. The transaction is effective as of 1 April 2015, and is anticipated to close before the end of 2015. Noble Energy will maintain operatorship of Block 12 with a 35% interest.

J. Keith Elliott, Noble Energy's Senior Vice President of Eastern Mediterranean, 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 liquefied natural gas (LNG) plants."

Noble Energy has also announced the sale of its 47% interest in the Alon A and Alon C licenses offshore Israel, which include the Tanin and Karish fields, to the Delek Group for a total deal value of US$73 million. 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.

The completion of both transactions are subject to certain regulatory approvals as well as customary closing conditions and adjustments.

Edited from press release by Angharad Lock

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/24112015/noble-energy-and-bg-international-in-partnership-in-block-12-1670/