Noble, Delek will return Block 12 rights to Cyprus

Israel's Delek Group and Texas-based Noble Energy will be handing back their exploration rights in the Cypriot Block 12 to the government of Cyprus, according to a report in Israeli press on May 17.

The companies are planning to keep rights at the Aphrodite field, which falls within Block 12, only hand back the exploration rights in the field, according to a report in Israeli paper Globes. 

Noble Energy and Cyprus Shell each have 35% stakes whereas Delek Drilling and Avner Oil each have 15% stakes in the Aphrodite field. The field has natural gas reserves of 125bn m³ and 9mn barrels of condensates. The Aphrodite partners will retain the rights to the field that they have discovered, the report added.

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, a senior source from Cypriot government quoted as saying in the report. The source also noted that Cyprus is not burdened with Israel's regulatory problems or worries about gas agreements, the report said.

Turkey and Europe have been looking to diversify sources of gas supply, with plans to build pipelines from Israeli offshore field Leviathan to Turkey already being debated. Its' estimated resources at 453bn m³ according to latest assessment prepared by Netherlands-based SGS.

Murat Basboga