CYPRUS, Monday, 18 January, 2016
A proposal put forward by Energy Minister Yiorgos Lakkotrypis before the Council of Ministers for participation of British Gas Group for the purpose of hydrocarbons exploration in block 12 within Cyprus` Exclusive Economic Zone (EEZ) has been approved.
The proposal stipulates that American owned Noble will continue to be the main operator in the block with a share of 35% while BG will also hold 35% and Israeli group Delek 30% (Delek Drilling has 15% and Anver Oik 15%.)
In statements after the Cabinet`s meeting Lakkotrypis said that in the coming days certain conditions put before the ministerial body will have to be implemented in order to go ahead with the final signature of the deal.
He said there are procedural matters to be taken care of next such as the government receiving letters of acceptance on the part of the companies and letters of guarantee for activities to be undertaken.
According to Lakkotrypis this is a very important development because it strengthens the joint venture of block 12 in view of the commercial exploitation of the Aphrodite reserves.
Once the deal is sealed, British Gas will be expected to offer its own comments on how to speed up planning and even on how to save resources, he noted replying to questions.
“It is something which we will officially see once BG signs and becomes part of the project`s joint venture officially,” he said.
Replying to a question he pointed out the British company has also expressed its interest in general for Cyprus` EEZ but has not specified yet for which particular block.
He further said that since BG is also a possible buyer of natural gas it will be able to speed up processes since it will be able to use the liquefaction terminal (IDKU) in Egypt which it manages and co-owns.
Replying to another question that as planning stands today 2020 will be the year for development and production of natural gas.
— (KYPE)
