Noble Energy: Block 12 gas production by 2018

Noble Energy Cyprus country manager John Tomich: We hope to replicate our Israeli success in Cyprus.

Cypriot daily "Famagusta Gazette" quotes Noble Energy Inc. (NYSE: NBL) Cyprus country manager John Tomich as saying that gas flow from the company Block 12 concession in Cyprus’s exclusive economic zone could begin in 2018.

At a lecture at the University of Cyprus yesterday, Tomich said, “We are estimating that it would take 3-4 years from discovery to when the gas hits shore in Cyprus. He added, “Technologically that is achievable”. He said that 3-4 years are to reach final investment decision and another 3-4 years to construct a plant for liquefying, making 2018 would be a reasonable estimate.

Tomich said, “We were lucky enough to be very successful finding giant gas fields in Israel and we hope to replicate that in Cyprus." He said that the well at the giant 8 trillion cubic-foot Tamar gas field, the company had to drill at a depth of more than 5,000 meters, which is very similar to Block 12.

Tomlich also said that the Israeli Leviathan field, located 50 kilometers from Block 12, was probably twice as big as the in Tamar field and he said Israel and Cyprus might cooperate. He said that in Noble Energy’s view, the most efficient and flexible way of developing a large gas find in Cyprus is to build a natural gas liquefaction plant, and that the site at Vasilikos was the only area the company is aware of that could house such a plant.

Tomlich said, “Having a major gas project in Cyprus would provide the people of Cyprus with a secure source of energy… it would be the best source of fuel for power generation in terms of fossil fuels." It Cyprus with cash flow over very long period of times, which depending on reserves could last decades, turning the island into an energy hub. "It would represent the largest inward investment in Cyprus history."

Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2011

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