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Israel tells energy companies to hold fire on Cyprus gas project

Mon, 09th Dec 2019 14:05

JERUSALEM, Dec 9 (Reuters) - Israel's Energy Ministry has
advised three energy companies not to start work on the
Aphrodite gas field off Cyprus until the two countries reach
agreement over ownership of the reserves.

Cyprus and Israel have been in dispute for several years
over the gas reserves that straddle their maritime border, with
no guarantee of any immediate resolution.

Cyprus last month signed a 25-year concession with Noble
Energy, Shell and Delek Drilling for
exploitation of the Aphrodite field, which was first discovered
in 2011.

The director general of Israel's Energy Ministry, Udi Adiri,
sent a letter to officials at the three companies, saying
development must not commence until agreement is reached between
the governments of Israel and Cyprus.

The letter dated Nov. 24, a copy of which was seen by
Reuters, reiterated Israel's long-standing position that an
agreement is needed to "facilitate the fair exploitation and
development of the field".

One option that has been raised, Adiri said, was for the
licensed companies on both sides to negotiate directly, subject
to approval from both governments.

Noble and Delek declined to comment on the letter. Shell did
not respond immediately to a request for comment.

There was no immediate comment from the Cypriot government.

The Aphrodite field holds an estimated 4.1 trillion cubic
feet of gas. At stake is around 10% of the deposit, which is a
fraction of the gas already discovered in Israel.
(Reporting by Ari Rabinovitch, Michele Kambas and Ron Bousso
Editing by David Goodman)

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