Marathon calls it the initial step in creating EG gas ‘mega hub’ 

Startup planned for 1H 2021

Noble Energy, Inc. (NYSE: NBL) has approved the Alen natural gas development offshore Equatorial Guinea (EG).

Natural gas from the Alen field will be processed through the existing Alba Plant LLC liquefied petroleum gas processing plant and EG LNG’s liquefied natural gas production facility (EG LNG) located at Punta Europa, Bioko Island.

Noble Energy, Marathon Oil Commit to Alen Field Gas Play

Source: Noble Energy – Alen Field in Equatorial Guinea

Definitive agreements in support of the project were executed between the Alen field partners, the Alba Plant and EG LNG plant owners, as well as the government of the Republic of Equatorial Guinea.

The Alen field initially commenced operation in 2013 as a condensate production and natural gas recycling project. Natural gas from the field has been produced and reinjected into the reservoir to support the enhanced recovery of liquids since startup. Primary condensate will continue to be produced and transported to the Aseng field production, storage and offloading vessel for sales.

Noble said the Alen gas monetization project will utilize the existing three high-capacity production wells on the platform, with minor modifications necessary to deliver sales gas from the platform to the Alba Plant and EG LNG facilities. A 24-inch pipeline capable of handling 950 million cubic feet of natural gas equivalent per day (MMcfe/d) will be constructed to transport all natural gas processed through the Alen platform approximately 70 kilometers to the onshore facilities.

At start-up, natural gas sales from the Alen field are anticipated to be between 200 and 300 MMcfe/d, gross (~75 to 115 MMcfe/d net to Noble Energy). The wet gas stream will be tolled through the Alba Plant for additional liquids recovery before converting dry gas into LNG via the EG LNG facility. The Company anticipates that Alen natural gas sales will grow modestly as open capacity in the EG LNG plant increases due to declining Alba field production.

Keith Elliott, Noble Energy’s Senior Vice President, Offshore, said, “We are excited to announce this high-return, capital-efficient development as our next offshore major project. First production is anticipated in the first half of 2021, following on our world-class Leviathan project which is expected to begin producing late this year. The Alen development is the first step towards creating an offshore natural gas hub in E.G., which will open the potential for future monetization of additional discovered resources through existing infrastructure.”

Noble discovered 3 Tcf of natural gas resources in Douala Basin to provide LNG sales

“Noble Energy has discovered three trillion cubic feet of gross natural gas resources in the Douala Basin, which positions us well for LNG sales exposure over the coming decade. These offshore major projects continue to differentially position Noble Energy to deliver substantial free cash flow and value to our shareholders,” Elliott said in a statement.

Noble Energy and partners will maintain ownership of the hydrocarbons through the processing facilities, and the Company will be progressing negotiations for offtake agreements to sell the LNG in global markets. Total estimated gross recoverable resources from the Alen field are approximately 600 billion cubic feet of natural gas equivalent.

Gross capital expenditures for the development are estimated to be $330 million (~$165 million net to Noble Energy). Capital expenditures for the project will be incurred in 2019 and 2020, and these amounts have already been included in the company’s previously communicated capital expenditure guidance.

Alen field

The Alen field is located on Block O (95 percent) and Block I (5 percent) offshore E.G. Noble Energy operates the Alen field and holds an approximate 45 percent working interest in the project (45 percent Block O and 38 percent Block I). Other Block O interest owners include Glencore with 25 percent and GEPetrol with the remaining 30 percent. Other Block I interest owners include Glencore with 23.75 percent, Atlas with 27.55 percent, GEPetrol with 5 percent and Gunvor with the remaining 5.7 percent.

Noble Energy holds a 28 percent working interest in the Alba Plant which is operated by Marathon Oil Corporation (NYSE: MRO). The EG LNG facility is also operated by Marathon Oil Corporation. Noble Energy does not hold working interest in the EG LNG facility.

Marathon

Marathon Oil Corporation (NYSE: MRO) said that it has executed the Definitive Agreements with the Government of the Republic of Equatorial Guinea and Alen Unit owners to process Alen Unit gas through Alba Plant LLC’s liquefied petroleum gas (LPG) processing plant and EG LNG’s liquefied natural gas (LNG) production facility, both located in Punta Europa, EG. Marathon through its wholly owned subsidiaries is the operator and majority shareholder of the integrated gas business at Punta Europa.

Marathon Oil said it will maintain market exposure through a combination of both profit sharing and tolling.

“This agreement is a significant step toward solidifying Punta Europa as a cornerstone component of the EG Gas Mega Hub for the potential development of local and regional natural gas,” said Mitch Little, Marathon Oil executive vice president, Operations. “With tie-ins available and minor modifications under way at the Alba Plant, capital requirements are minimal. Importantly, the project leverages existing capacity of the world-class Alba Gas Plant and EG LNG facilities, and all parties benefit from exposure to global LNG prices.”

The development also supports a thriving Equatorial Guinea gas industry into the future and will create opportunities for development of Equatoguineans and local enterprise.

Marathon said about 80 percent of Marathon Oil’s total current workforce in EG are national citizens, with approximately 1,250 Equatoguineans employed directly or indirectly across the Punta Europa complex.  Marathon Oil has a strong commitment to the continued progression of Equatoguinean employees and supports the development of the local services market.

The Punta Europa parties include Alba Plant LLC, Alba Unit and Equatorial Guinea LNG Train 1, S.A. (EGLNG). The interest holders in Alba Plant LLC include Marathon Oil, Noble Energy Inc. and Sociedad Nacional de Gas de Guinea Ecuatorial (Sonagas G.E. S.A.). The interest holders in Alba Unit are Marathon Oil, Noble Energy Inc. and Compania Nacional de Petroleos de Guinea Ecuatorial (GEPetrol). The shareholders of EG LNG’s holding company include Marathon Oil, Sonagas, Mitsui & Co. Ltd. and Marubeni Gas Development UK Limited.

The Alen Unit is operated by Noble Energy Inc. and is comprised of the Block O and Block I contractor groups.  The members of the Block O contractor group are Noble Energy, Glencore Exploration Limited and Compañía Nacional de Petróleos de Guinea Ecuatorial (GEPetrol).  The members of the Block I contractor group are Noble Energy, Glencore Exploration (EG) Limited, Atlas Petroleum International Limited, Gunvor Resources Limited and GEPetrol.

 

 


Legal Notice