Current NBL Stock Info

Noble Energy, Inc. (ticker: NBL) has signed agreements to sell significant quantities of natural gas from the Leviathan and Tamar fields to Dolphinus Holdings Limited to supply gas in Egypt.

These agreements, one for natural gas from Leviathan and one for Tamar, each provide for total contract quantities of 1.15 trillion cubic feet of natural gas. The natural gas is anticipated to supply industrial and petrochemical customers as well as future power generation in Egypt, Noble said.

Sales volumes under the agreement associated with the Leviathan field are anticipated to begin at a firm rate of approximately 350 MMcf/d at the startup of the Leviathan project at the end of 2019.

For the Tamar agreement, sales volumes are anticipated to begin at an interruptible rate of up to 350 MMcf/d, dependent upon gas availability beyond existing customer obligations in Israel and Jordan.  Noble Energy said it will have an option to convert the Tamar interruptible quantity to a firm-basis with a significant take or pay commitment. Both contracts are for a 10-year term.

EVP of Operations Gary W. Willingham commented, “At Leviathan, we have executed agreements totaling nearly 900 MMcf/d and are closing in on our targeted sales volume amount of 1 Bcf/d. For Tamar, we now have a contract to sell any excess gas beyond current customer needs in Israel and Jordan to Egypt. The continued progress in regional gas marketing, along with our previously announced divestiture at Tamar, are major deliverables for 2018 and we are accomplishing them very early in the year.”

The gas price formula is the same under both agreements with linkage to Brent oil prices, similar to other regional agreements. The Leviathan contract represents expected total gross revenue approaching $7 billion at recent Brent prices, with Tamar potential revenues up to a similar amount, dependent on actual volumes sold.

Noble Energy operates the Leviathan and Tamar gas fields with a 39.66% working interest and 32.5% working interest, respectively. Earlier in 2018, the company announced a 7.5% working interest divestment in the Tamar field, which is anticipated to close in the first quarter of 2018, at which time the company’s interest in Tamar will reduce to 25%.

The Times of Israel reported that Delek, Noble’s partner in the Leviathan and Tamar fields, said in an email statement that the partners were considering various options for the supply of the gas to Egypt, including via a Jordanian-Israeli pipeline that is currently being built or the use of the existing East Mediterranean Gas pipeline. Delek Drilling and Noble plan to start negotiations with EMG for the use of the pipeline to Egypt, the companies said in a separate, emailed statement.

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