Italy's oil and gas company
) has inked an exploration and production sharing contract with
the Ministry of Commerce, Industry and Tourism of the Republic of
Cyprus for three exploration blocks.
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The consortium comprising Eni and Korean company Kogas, was
officially awarded blocks 2, 3 and 9 through an international
competitive tender, which was completed in May 2012. Located in
the Cypriot deep offshore section of the Levantine basin, the
blocks span approximately 4,800 square miles.
Eni, the operator of the three blocks has an interest of 80%,
while its partner the Korean company Kogas holds a 20% stake.
With these blocks Eni has made its debut in the eastern
Mediterranean island's prospective - but controversial - offshore
play. The oil and gas industry focuses on this region as it is
considered rich in largely unexploited reserves.
Noble Energy, Inc.
) is known to have found around 5-8 trillion cubic feet of
natural resources in the Aphrodite gas discovery in Block 12, in
2011. Several other important gas discoveries have been made
there since Noble's expedition.
The tracts - block 2, 3 and 9 - are situated to the south and
south-east of the island, while two of them rest vertically above
the major gas discovery.
Cyprus is also in talks with France's
), which has bid for two other blocks. The bid is expected to
The energy minister of the island is of the opinion that the
licensing to Eni and Kogas would create synergies. Two of the
blocks move in the path of a pipeline proposed to carry gas from
the Noble concession to a terminal, where the gas will be
converted into its liquefied form onshore.
Eni holds a Zacks Rank #3, which is equivalent to a Hold rating
for a period of one to three months.
Royal Dutch Shell plc
) is another oil and gas stock, carrying a Zacks Rank #1 (Strong
Buy) and thus expected to perform better over the next one to