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BG group at the cabinet

18/01/2016 12:23
The Council of Ministers will assess on Monday a proposal submitted by Energy Minister on the acquisition by BG Group of a 35% stake in block 12 off shore Cyprus.

Under the proposal, US Noble Energy will remain as the blocks operator with a 35% stake, BG will hold 35% and the remaining 30% is held by Delek Group. Total cash consideration was $165 million.

Block 12 contains the Aphrodite gas field estimated to hold a gross mean resource of 4.5 trillion cubic feet of natural gas.

Announcing the transaction on 23 November 2015, Minister of Energy Yiorgos Lakkotrypis said this “was very significant development which shows the increased confidence in Cyprus` EEZ and its prospects, from a company with huge technical and commercial-economic potential.”

“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,” BG said in a statement announcing the transaction.