Delek and Noble Energy will retain rights to the Aphrodite natural gas field that they have already discovered.
Delek Group Ltd. (TASE: DLEKG) and Noble Energy Inc. (NYSE: NBL) are expected to hand back exploration rights in Block 12 to the Cypriot government. The two companies have held the rights for seven years and are supposed to continue exploration drilling but have not done so, and next week the rights expire.
Delek and Noble Energy have already discovered the Aphrodite field in Block 12 containing 125 billion cubic meters (BCM) of natural gas and nine million barrels of condensate. It is the only gas field to date discovered in Cyprus Shell and Noble energy each hold a 35% stake and Delek holds 30% (Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each have a 15% stake).
The Aphrodite partners will of course only be handing back the exploration rights but will retain the rights to the field that they have discovered.
A senior source in the Cypriot government admitted that noble energy's reluctance to continue drilling in Block 12 testifies to its lack of confidence in finding more customers to buy any gas that is found. However, the source stressed that Cyprus is not burdened with Israel's regulatory problems and worries about gas outline agreements and monopolies.
Published by Globes [online], Israel business news - www.globes-online.com - on May 16, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016
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