Energy deal boosts plans to export gas to Egypt

A move by British oil and gas company BG International to buy a stake in Cyprus' offshore mineral deposits is an important step forward for the country's plans to supply Egypt with natural gas, the east Mediterranean island's energy minister said Monday.

Yiorgos Lakkotrypis said U.S. company Noble Energy has cut a deal with BG International for a 35 percent stake in an area, or block, where a field estimated to contain more than 4 trillion cubic feet of gas has been found.

Lakkotrypis said the deal is a vote of confidence on the commercial prospects of Cyprus' offshore gas deposits. It also boosts the chances of developing the gas field since BG operates a gas processing plant in Idku, Egypt.

"It's very important that commercial interests are becoming aligned with our efforts to supply gas to Egypt," Lakkotrypis said.


No financial terms were disclosed. Noble will remain the block's operator and keep a 35 percent stake in it. Israeli companies Delek and Avner each have a 15 percent stake.