Noble Energy Sanctions the Alen Gas Monetization Project with Startup Planned in the First Half of 2021
Noble Energy, Inc. (NYSE: NBL) (“Noble Energy” or the “Company”)
announced today that the Company 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 (Alba Plant) and EG LNG’s liquefied
natural gas production facility (EG LNG) located at Punta Europa, Bioko
Island. 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.
J. Keith Elliott, Noble Energy’s Senior Vice President, Offshore,
stated, “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 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.”
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. 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.
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.
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.
Noble Energy (NYSE: NBL) is an independent oil and natural gas
exploration and production company committed to meeting the world’s
growing energy needs and delivering leading returns to shareholders. The
Company operates a high-quality portfolio of assets onshore in the
United States and offshore in the Eastern Mediterranean and off the west
coast of Africa. Founded more than 85 years ago, Noble Energy is guided
by its values, its commitment to safety, and respect for stakeholders,
communities and the environment. For more information on how the Company
fulfills its purpose: Energizing the World, Bettering People’s Lives®,
visit https://www.nblenergy.com.
This news release contains certain "forward-looking statements"
within the meaning of federal securities laws. Words such as
"anticipates", "believes", "expects", "intends", "will", "should",
"may", and similar expressions may be used to identify forward-looking
statements. Forward-looking statements are not statements of historical
fact and reflect Noble Energy's current views about future events. Such
forward-looking statements may include, but are not limited to, future
financial and operating results, and other statements that are not
historical facts, including estimates of oil and natural gas reserves
and resources, estimates of future production, assumptions regarding
future oil and natural gas pricing, planned drilling activity, future
results of operations, projected cash flow and liquidity, business
strategy and other plans and objectives for future operations. No
assurances can be given that the forward-looking statements contained in
this news release will occur as projected and actual results may differ
materially from those projected. Forward-looking statements are based on
current expectations, estimates and assumptions that involve a number
of risks and uncertainties that could cause actual results to differ
materially from those projected. These risks and uncertainties include,
without limitation, the volatility in commodity prices for crude oil and
natural gas, the presence or recoverability of estimated reserves, the
ability to replace reserves, environmental risks, drilling and operating
risks, exploration and development risks, competition, government
regulation or other actions, the ability of management to execute its
plans to meet its goals and other risks inherent in Noble Energy's
businesses that are discussed in Noble Energy's most recent annual
reports on Form 10-K, respectively, and in other Noble Energy reports on
file with the Securities and Exchange Commission (the "SEC"). These
reports are also available from the sources described above.
Forward-looking statements are based on the estimates and opinions of
management at the time the statements are made. Noble Energy does not
assume any obligation to update any forward-looking statements should
circumstances or management’s estimates or opinions change.
The Securities and Exchange Commission requires oil and gas
companies, in their filings with the SEC, to disclose proved reserves
that a company has demonstrated by actual production or conclusive
formation tests to be economically and legally producible under existing
economic and operating conditions. The SEC permits the optional
disclosure of probable and possible reserves; however, we have not
disclosed the Company’s probable and possible reserves in our filings
with the SEC. We use certain terms in this news release, such as “gross
recoverable resources,” which are by their nature more speculative than
estimates of proved, probable and possible reserves and accordingly are
subject to substantially greater risk of being actually realized. The
SEC guidelines strictly prohibit us from including these estimates in
filings with the SEC. Investors are urged to consider closely the
disclosures and risk factors in our most recent annual report on Form
10-K and in other reports on file with the SEC, available from Noble
Energy’s offices or website, http://www.nblenergy.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190401005876/en/
Copyright Business Wire 2019