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Noble Energy to Sell 35% Stake in Block 12, Cyprus for $165M

Noble Energy, Inc.NBL announced that Britain's BG International has agreed to acquire a 35% stake in Block 12 for a total cash consideration of $165 million. Block 12 of offshore Cyprus' Exclusive Economic Zone includes the natural gas field, Aphrodite, believed to have natural gas resources of about 4 trillion cubic feet. Noble Energy will continue as the operator of Aphrodite with 35% interest.

Noble Energy expects to capitalize on BG''s technical, financial and marketing expertise for developing the Aphrodite gas field. Even after the sale of interest, Noble Energy will continue to have a strong presence in the Mediterranean region, as the operator of Aphrodite with a 35% interest along with the Leviathan and Tamar gas fields in offshore Israel. The other 30% interest is held by Delek Group.

For BG, this acquisition represents a potential source of natural gas supply to Egypt where the firm has an equity ownership in the LNG export unit at Idku as well LNG offtake rights to lift 3.6 million tons per year.

In Aug 2011, Noble Energy had agreed to a production-sharing deal with the Government of Cyprus for the commercial development of Block 12.

In Jun 2015, Noble Energy and Delek Group announced that they intended to produce 8 billion cubic meters of natural gas from Aphrodite. Development plans for Aphrodite also include the construction of a pipeline to Egypt and an LNG plant in Cyprus that would receive gas from the Leviathan field.

Additionally, Noble Energy has announced that it is divesting a 47% interest in Alon A and Alon C licenses to Delek Group for a consideration of $73 million. The licenses in offshore Israel which include the Tanin and Karish fields are an important step toward their ultimate sale to a third party.

Zacks Rank

Noble Energy carries a Zacks Rank #3 (Hold). Some better-ranked players in the oil and gas space are Antero Resources Corporation AR and Contango Oil & Gas Company MCF , sporting a Zacks Rank #1 (Strong Buy ) and Apache Corp. APA , carrying a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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