Cyprus Goverment approves gas share for BG

19/01/2016
The Cabinet on Monday gave the green light to an Energy Ministry proposal to include the BG Group (British Gas) in the consortium for Block 12 of Cyprus’ Exclusive Economic Zone (EEZ).

Speaking after the cabinet meeting, Energy Minister Yiorgos Lakkotrypis said related procedures would be entered into over the coming days. He described the move as an important development in the block’s exploitation.

US Noble Energy will remain the main operator of the block with a 35% share with BG also taking on 35%. The Isreaeli Delek group will hold 30% of which 15% will be in the hands of Delek Drilling and 15% in the hands of Avner Oil.

Block 12 contains the Aphrodite gas field estimated to hold a gross mean resource of 4.5tn cubic feet of natural gas. Announcing the transaction on 23 November 2015, Minister of Energy Yiorgos Lakkotrypis said this “was a very significant development which shows the increased confidence in Cyprus` EEZ and its prospects, from a company with huge technical and commercial-economic potential.”

“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 said in a statement announcing the transaction. The total cash consideration was for $165mn.