BG Group buys 35% stake in Aphrodite gas discovery, offshore Cyprus

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BG Group announced it has taken a 35% holding in Block 12 offshore Cyprus which includes the Aphrodite gas discovery. 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.

Operated by Noble Energy, the Aphrodite gas discovery is approximately 170 kilometres south of Limassol.

Noble Energy confirmed the acquisition for total cash consideration of $165 million. Aphrodite, discovered in 2011, has gross mean natural gas resources of approximately four trillion cubic feet. The transaction has an effective date of April 1, 2015, and is expected to close before the end of 2015. Noble Energy will maintain operatorship of Block 12 with a 35 percent interest.

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Noble Energy’s East Mediterranean Operations (Source: Noble Energy Website)

J. Keith Elliott, Noble Energy’s Senior Vice President of Eastern Mediterranean, said, “Entering this upstream partnership with BG in our Cyprus discovery is an important step in moving the project forward for development. BG brings substantial technical, financial and marketing capacity to the partnership. Their longstanding presence and experience in the region are great complements to our own, and we are confident our combined strengths will enhance the value of Block 12. We are continuing to work with the government of Cyprus to finalize Aphrodite development plans.  In conjunction with that work, we have recently commenced gas marketing efforts, primarily targeting customers in Egypt, including both domestic purchasers and underutilized liquefied natural gas (LNG) plants.”

Completion of the transaction is subject to certain regulatory approvals as well as customary closing conditions and adjustments.

(BG Group & Noble Energy Press Releases)

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