Noble Energy signs agreements to sell Natural Gas from Leviathan and Tamar fields

Noble Energy declared having signed agreements to sell considerable quantities of Natural Gas from the Leviathan and Tamar fields to Dolphinus Holdings Limited ensuring supply of gas in Egypt.

The agreement stipulated 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. As far as the Tamar agreement is concerned, sales volumes are expected to begin at an interruptible rate of up to 350 MMCf/d, dependent upon the availability of gas beyond existing customer obligations in Israel and Jordan.

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.

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.”