Noble Energy Inc.
) struck a deal with the Cyprus government for the development of
a Liquefied Natural Gas ("LNG") terminal on the island, as per
media reports. The deal received preliminary approval from the
Cypriot government. The parties will sign a Memorandum of
Israel's Delek Drilling LP and Avner Oil Exploration LLP will
also be a part of the project. The Cyprus government in order to
revive its beleaguered economy intends to exploit its vast gas
resources as well as discoveries in the Eastern Mediterranean via
this LNG terminal.
The details of the agreement were however undisclosed. The
cost behind the project is projected to be roughly $10
Noble Energy is a prime operator in Eastern Mediterranean and
has several exploration prospects, the most significant being the
Tamar gas fields and the Leviathan Basin. The company in late
2011 received the concession to explore the Aphrodite gas field
located off the coast of Cyprus. It is estimated to have a
reserve volume of 991 billion cubic meters.
The proposed LNG complex in Cyprus will help in easy
transportation of Noble Energy's gas production to the
energy-hungry market of Israel as well as to the countries of
Asia and Europe. The Israeli programs alone will lead to an
upswing in net profits by around 30% by 2015 for the company.
With gas exports in Israel expected to hit $60 billion in the
next 20 years, this LNG project would prove a critical component
for growth for heavy investors like Noble Energy.
Israel is expected to come at par with Saudi Arabia in terms
of energy reserves, as per the World Petroleum Council. We
believe Noble Energy's strategy to invest a hefty $400 million in
the Eastern Mediterranean in 2013 will certainly fetch attractive
Currently, Noble Energy retains a Zacks Rank #3 (Hold). Other
oil and gas operators profiting from exploration initiatives at
the moment are Zacks Ranked #2 (Buy)
Anadarko Petroleum Corp.
EOG Resources Inc.
Houston, Texas-based Noble Energy operates internationally and
engages in the acquisition, exploration, development, production,
and marketing of crude oil, natural gas and natural gas
ANADARKO PETROL (APC): Free Stock Analysis
ENCANA CORP (ECA): Free Stock Analysis Report
EOG RES INC (EOG): Free Stock Analysis Report
NOBLE ENERGY (NBL): Free Stock Analysis
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