Cyprus Mail
Letters

What happens if oil prices dip below $60 per barrel?

Keith Elliott, Noble Energy senior VP Global Offshore (L) with Energy Minister Giorgos Lakkotrypis (Photo Christos Theodorides)

My understanding the ROC has agreed for its profit share to be tied to the oil price fluctuations and the range in the forecasts is between $60 and $80 per barrel.

In other word, the ROC’s profit share is an X (a variable) in the mathematical equation. And if the price dips below $60 for a prolonged time then the whole project may be in danger.

What I want to know is this:

1) The ownership percentage share of each party in the deal: Noble Energy (the US), Shell (Anglo-Dutch), Delek (Israel) and the ROC (the Greek occupied South Cyprus)

2) The resolution of the Israeli claim to the Aphrodite field. Will the ROC have to share eventually its profit share with Israel or is it built-in into Delek’s share?

Tal

Lakkotrypis: another milestone in Cyprus’ energy programme

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