BG Deal Brings Cyprus, Israel Gas A Step Closer To Egypt

UK firm BG has paid US firm Noble Energy $165mn for a 35% stake in Cyprus’ sole gas discovery, the 5 tcf Aphrodite field. This values Aphrodite at $470mn – a relatively modest sum that reflects the challenges in bringing the field, which is 200km offshore in 2,000ms water depth, to development.

Noble will remain as operator keeping half of its former 70% stake. Both the US firm and BG say the sale boosts plans to develop Aphrodite by means of a tie-in to the BG-operated 7.2mn tons/year LNG liquefaction plant at Idku on the Egyptian coast, which has been idle since Egypt forced BG to halt exports in 2013. (CONTINUED - 1158 WORDS)