The cabinet is on Monday expected to approve the participation of the BG Group (British Gas) in Block 12 of the island’s exclusive economic zone (EEZ).
BG said in Novemer it had acquired a 35 per cent stake in Block 12, following an agreement with concession holder and operator Noble Energy.
The British company said the block’s upstream position provided 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. Under the deal, Noble retains 35 per cent of equity in Block 12 and remains the operator.
The other stakeholders in Block 12 are Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership, each with a 15 per cent working interest.
The agreement is subject to government approval, which Noble formally requested.
Energy Minister Giorgos Lakkotrypis said at the time that it was an extremely important development “which indicates a vote of confidence” in Cyprus’ EEZ and its prospects.