The Cypriot Government has approved Noble Energy’s proposal to transfer 30% of its rights in Block 12 to Delek Group’s subsidiary Delek Drilling.
Delek Drilling said it will receive 15% of the rights from another Delek Group subsidiary, Avner Oil and Gas.
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Noble Energy owns a concession in Block 12, which is close to Israel’s Leviathan field.
The rights transfer is part of an ongoing co-operation between Cyprus and Israel in drilling in Block 12.
Noble Energy will remain the sole operator of the concession and that its obligations towards Cyprus remain unchanged, according to a production-sharing contract.
Noble Energy’s Cypriot subsidiary, Noble Energy International, received a letter from the Minister of Commerce, Industry and Tourism of Cyprus.
Under the terms of the letter, the Cypriot Government had approved Delek’s application from July 11 to obtain 30% of the rights and production sharing contract (PSC) to Block 12, 15% each to Avner and Delek Drilling.
Avner and Delek Drilling may not be the drilling operator at Block 12 as defined in the PSC and the license agreement with Noble Energy.
Noble Energy earlier said the estimated natural gas reserves at Block 12 were 3-9 trillion cubic feet.
The reserves have a geological probability of success of 60%, less than earlier estimates of ten trillion cubic feet.
Cypriot Minister of Commerce, Industry and Tourism Praxoula Antoniadu had earlier confirmed that technical problems would delay announcement of the exploratory well’s results until late December.
Energy & infrastructure group Delek Group is based out of Israel with investments in upstream & downstream energy, water desalination and power plants globally.
