Noble Energy Sanctions the Alen Gas Monetization Project with Startup Planned in the First Half of 2021
02 April 2019 - 7:31AM
Business Wire
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/
Investor ContactsBrad
Whitmarsh(281) 943-1670Brad.Whitmarsh@nblenergy.com
Park Carrere(281) 872-3208Park.Carrere@nblenergy.com
Media ContactsReba Reid(713)
412-8441media@nblenergy.com
Paula Beasley(281) 876-6133media@nblenergy.com
Noble Energy (NYSE:NBL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Noble Energy (NYSE:NBL)
Historical Stock Chart
From Jul 2023 to Jul 2024