Delek Group Ltd. (TASE: DLEKG) and Noble Energy are expected to bid for new natural gas exploration licenses in Cyprus, energy sector sources said today. Some of the licenses include geological features similar to those of the huge Zohr reservoir in Egypt and the Tamar and Leviathan reservoirs in Israel. Major international energy companies are also expected to bid. A few months ago, Delek Group and Noble Energy abandoned their exploration rights in Block 12, where the Aphrodite gas reservoir was discovered.
The Cypriot press today reported that the companies interested in Blocks 6, 8, and 10 the new blocks include Italian company Eni, which discovered two reservoirs last year in Egypt, one of which was the Zohr reservoir; French company Total; and BP and Royal Shell, which acquired British Gas. It was also reported that following the discovery of the Zohr reservoir, the current set of licenses is expected to attract the greatest interest to date.
Delek Group and Noble Energy also took part in the first group of licenses issued in Cyprus in 2007, in which they discovered Aphrodite. 33 companies completed for nine blocks in 2012. Winners in the latter auction included Total with two blocks and Eni and Kogas with three blocks.
Only two months ago, Delek Group and Noble Energy returned their exploration rights in Block 12 to the Cypriot government, after holding the rights for seven years. The companies were to have continued exploratory drilling there, but did not do so, and the rights expired. The Aphrodite reservoir, the only reservoir in Cyprus, which contains 125 BCM of natural gas and nine million barrels of crude oil, is currently owned by Royal Shell (35%), Noble Energy (35%), and Delek Group and Avner Oil and Gas LP (TASE: AVNR.L) (15% each).
The return of the rights does not mean returning the area of the Aphrodite reservoir; it refers only to the exploration licenses in the areas near Aphrodite. The report from Cyprus notes that at a later stage, Cyprus will again publish these rights, which are expected to arouse international interest.
Published by Globes [online], Israel business news - www.globes-online.com - on July 20, 2016
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