Noble & Delek Swap Interests in Cyprus Offshore

Cooperation between Israel and Cyprus on the offshore Mediterranean Leviathan field deepened on Friday as an asset switch  between US Noble Energy Inc and Israeli Delek Group was approved by the government.

Yesterday Delek announced that the 30 per cent stake in Block 12, which is located in Cypriot waters bordering Israel, will switch from Noble to Delek Drilling (15 per cent) and Delek subsidiary Avner Oil and Gas following a letter of approval from the Minister of Commerce, Industry and Tourism of Cyprus on Friday. The Production Sharing Contract (PSC) between Noble and Delek will see 30 per cent of both the revenues and exploratory licence transferred to Delek.

The PSC will deepen relations between Cyprus and Israel but may frustrate relations with Turkey. Turkey refuses to recognise Cyprus's sovereignty over the waters. Turkey last month said that it will not continue relations with the EU or recognise Cyprus's presidency of the EU if the gas issue is not fixed before Cyprus takes its seat next year.

"We absolutely don’t recognise Southern Cyprus, and we will never sit at the table with them if they assume the EU presidency," Turkish Prime Minister Recep Tayyip Erdoğan said at the time.

Relationship issues between Cyprus and Israel piqued in September when Noble began drilling on the Leviathan field.