Noble Energy Announces Execution of Gas Sales Agreements for Export of Gas to Egypt
20 February 2018 - 2:54AM
Noble Energy, Inc. (NYSE:
NBL) (“Noble Energy” or
the “Company”) announced today that it 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.
Noble Energy (NYSE: NBL) is an
independent oil and natural gas exploration and production company
with a diversified high-quality portfolio of both U.S.
unconventional and global offshore conventional assets.
Founded more than 85 years ago, the Company is committed to safely
and responsibly delivering our purpose: Energizing the World,
Bettering People’s Lives®. For more information, visit
http://www.nblenergy.com.
Forward Looking Statements
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.
Investor Contacts
Brad Whitmarsh
(281) 943-1670
Brad.Whitmarsh@nblenergy.com
Megan Dolezal
(281) 943-1861
Megan.Dolezal@nblenergy.com
Lauren Brown
(281) 872-3208
Lauren.Brown@nblenergy.com
Media Contacts
Reba Reid
(713) 412-8441
media@nblenergy.com
Paula Beasley
(281) 876-6133
media@nblenergy.com
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