Gulf Oil and Gas accountACCOUNT

Noble Energy Executes Gas Sales Agreements for Export of Gas to Egypt

Source: www.gulfoilandgas.com 2/19/2018, Location: Africa

Share |
Noble Energy, Inc. 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.

Sales volumes under the agreement associated with the Leviathan field are anticipated to begin at a firm rate of approximately 350 million cubic feet of natural gas per day (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 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.

Gary W. Willingham, Noble Energy's Executive Vice President, Operations, commented, "These agreements continue to demonstrate the strength of the regional market for our natural gas in the Eastern Mediterranean. 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. This provides even further clarity and confidence in our expected cash flow profile for 2018 and beyond."

The gas price formula is the same under both agreements with linkage to Brent oil prices, similar to our 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. Both agreements are subject to closing obligations including regulatory approvals and licenses, and finalizing gas transportation agreements.

Noble Energy operates the Leviathan and Tamar gas fields with a 39.66 percent working interest and 32.5 percent working interest, respectively. Earlier in 2018, the Company announced a 7.5 percent 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 percent.



Natural Gas News in Egypt >>

Mozambique >>  6/15/2018 - Anadarko Petroleum Corporation announced Mozambique LNG1 Company Pte. Ltd., the jointly owned sales entity of the Mozambique Area 1 co-venturers, has ...
Algeria >>  6/14/2018 - GAS NATURAL FENOSA and SONATRACH (the Algerian company Sociéte Nationale pour la Recherche, Production, Transport, Transformation and Commercializatio...

Russia >>  6/8/2018 - A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Wang Yilin, Chairman of the Board of Directors of CNPC, too...
China >>  6/1/2018 - China's CNPC plans to consolidate billion-dollar underground gas storage assets into one business to expedite an infrastructure upgrade it needs to av...

Azerbaijan >>  5/29/2018 - Azerbaijan launched the first phase of a pipeline project on Tuesday to supply gas to Turkey and southern Europe, part of a European effort to reduce ...
Egypt >>  5/25/2018 - As part of XXII St. Petersburg International Economic Forum, Rosneft, Fleet Energy and Fleetliner Energy S.A. signed a Framework Cooperation Agreement...

Related Categories: Coal  Electricity  General  Natural Gas  Oil 

Related Articles: Coal  Electricity  General  Natural Gas  Oil 


Egypt Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 |

More News

 

Oil & Gas Companies in Egypt >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.