Cyprus on alert as Chevron snaps Noble

The acquisition of Noble Energy by Chevron is a development that may affect the development of the "Aphrodite" deposit, the Cypriot energy ministry has said, following the announcement of this year’s largest deal in the US energy sector.

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On Monday, Chevron said it would buy Noble Energy in a $5 billion all-stock deal, bolstering its shale presence as a plunge in crude prices have made assets cheaper. The company said it has no immediate plans to sell off Noble assets that may not fit in its portfolio.

Experts said Chevron’s acquisition of Noble Energy may represent the first in a wave of consolidations that could leave the energy industry smaller, but dominated by big players better able to weather the boom and bust cycles of the volatile oil market.

Chevron CEO Mike Wirth said the company was interested in acquiring Noble primarily because of its complementary assets both in the US and around the world.

Following Chevron’s announcement on Monday, newly-appointed Energy Minister Natasa Pilides said she would hold teleconference calls in the next few days with the heads of both Chevron and Noble Energy.

Pilides said she would seek to get fuller information on the terms of the merger agreement, in particular those concerning the development of "Aphrodite" in the eastern Mediterranean.

Noble Energy is a member of the consortium of companies holding an Operating Licence for the Aphrodite deposit in the Exclusive Economic Zone declared by Republic of Cyprus.

“This constitutes a development that may affect the development of the deposit,” the energy ministry said in a statement.