The Delek Group announced to the Tel Aviv Stock Exchange on Monday that it has begun preliminary negotiations with Noble Energy for the acquisition of 19.9% of Noble’s share in Block 12 in Cyprus.

Noble owns 70% while Delek Drilling Limited Partnership owns 15%, while Avner Oil Exploration, part of the Delek Group, also owns 15%.

The Aphrodite field in Block 12 contains an estimated 4.5 trillion cubic feet of gas.

The move would out Delek and Noble almost on an equal footing, with Noble owning 51.1% and Delek owning 49.9%.

The announcement raises questions about whether Noble is still looking for a bigger investor in Block 12.

The government of Cyprus is hoping to sell gas to Egypt, where BG and Spain’s Union Fenosa have ideal liquefied natural gas (LNG) plants.

Source: InCyprus