British Gas will on Wednesday be joining the consortium which has the concession on Block 12 in Cyprus’ Exclusive Economic Zone (EEZ), Energy Minister Giorgos Lakkotrypis announced on Tuesday.
Presenting the island’s strategy on exploiting energy reserves at the international affairs think tank Chatham House in London he formally announced the Cabinet’s decision taken just over a week ago allowing the entry of BG Group in the consortium would be implemented.
Representatives from BG and Noble – which holds 35 per cent of equity in the offshore block and remains the operator – are expected to sign the deal at his ministry on Wednesday when he too arrives back to Cyprus.
The deal with BG, worth a reported $165m (€150m), had been subject to government approval, which Noble had formally requested.
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.
During his speech, Lakkotrypis made key reference to Nicosia’s cooperation and negotiation with countries such as Egypt, Israel and Lebanon as well as contacts with Jordan and agreements with international energy giants.
To best maximise natural gas in Cyprus’ EEZ, the most sustainable option is exporting to Egypt for international consumption or for further export, the minister added.
Lakkotrypis is the first Cypriot minister to participate in an international conference organised by Chatham House.