After taking over Noble Energy this week, Chevron will likely take its time in deciding what to do with the Aphrodite gas-field
Chevron agreed this week to acquire Noble Energy, mostly because of its shale oil and gas assets in the US, at a bargain price of close to $5billion – about 40 per cent of the value of the company at the start of the year. It will be an all-stock deal, equivalent to about 3 per cent of Chevron’s market value.
But Chevron is also interested in Noble’s East Med natural gas assets, which, in addition to Tamar and Leviathan in Israel, also include the Aphrodite gas-field in Cyprus’ EEZ.
Given its priorities, it remains to be seen how Chevron deals with Aphrodite. I think it will take its time before it decides.
In one sense, this acquisition overcomes the problems I raised in my article in the Cyprus Mail on Aphrodite on June 21. The dire financial condition of Noble was challenging its ability to proceed with the agreed development plan of the gas-field.
Source: Cyprus Mail
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