Delek looking to increase stake in Block 12, offshore Cyprus

Israel’s Delek Group has begun preliminary negotiations with Noble Energy International, Ltd. for the acquisition of 19.9% of its share in Block 12, offshore Cyprus.

Noble Energy currently owns a 70% share in the Block 12, containing the Aphrodite gas discovery. Delek Group said in a statement that it was looking to buy around 19.9% of the working interest from Noble Energy, for about $155 million.

Delek Group, which already owns 30% share in the block through its subsidiaries Delek Drilling and Avner Oil Exploration, noted that the negotiation was in its initial stage “which is not binding and not exclusive.” The company said there was no certainty that the negotiations would mature into any binding agreement between the parties.

The transaction, as it progresses, is subject to various approvals, including the approval of the competent organs of the Company and Noble Cyprus, the approval of the Republic of Cyprus as well as other approvals as required.

As for the Aphrodite development, the partners in Block 12, together with the Cyprus government, are looking at options for the supply of natural gas to the local market in Cyprus and for the export natural gas through a pipeline to other markets, including Egypt. Aphrodite is expected to start delivering gas in the first half of 2020.

Offshore Energy Today Staff