Noble Energy Amends Gas Sales Contracts With Dolphinus Holdings Limited, Increasing Firm Sales Volumes Into Egypt
02 October 2019 - 9:15PM
Business Wire
Noble Energy, Inc. (NYSE: NBL) (“Noble Energy” or the
“Company”) announced today that the Company and its partners have
amended their agreements for the sale of natural gas to Dolphinus
Holdings Limited from the Leviathan and Tamar fields. The amended
agreements now provide for total combined firm contract quantities
of 3 trillion cubic feet (Tcf) of natural gas, more than doubling
the firm volume commitments previously agreed. In addition, each
agreement has been extended by five years to reflect 15-year
terms.
Beginning January 1, 2020 and throughout the contract term, the
Company and its partners have committed to supply volumes as
summarized below:
- January 1, 2020 – June 30, 2020: Leviathan 200 million cubic
feet per day (MMcf/d) of natural gas
- July 1, 2020 – June 30, 2022: Leviathan 350 MMcf/d, Tamar 100
MMcf/d
- July 1, 2022 – December 31, 2034: Leviathan 450 MMcf/d, Tamar
200 MMcf/d
These contracts replace the previous firm commitment of 1.15 Tcf
from the Leviathan field and the previous interruptible quantity of
1.15 Tcf from the Tamar field. Both contracts include take or pay
commitments. During the two-year period ended June 30, 2022,
Leviathan will backstop any volume commitment that Tamar is unable
to deliver under the amended agreement.
David L. Stover, Noble Energy’s Chairman and CEO, stated, “This
agreement is a major step for Noble Energy’s Eastern Mediterranean
projects, expanding the long-term export demand in the region. The
supply flexibility between assets will enable Tamar to continue
producing at high rates, while Leviathan grows rapidly toward its
initial capacity. With first gas from Leviathan anticipated by the
end of the year, this agreement provides further clarity to our
2020 cash flow profile and beyond.”
The amended agreements are subject to certain regulatory
approvals. In addition, the Company and its partners are working to
complete the acquisition of interest in the EMG Pipeline, which is
anticipated to occur early in the fourth quarter of 2019.
Noble Energy holds a 39.66 percent working interest in the
Leviathan project. Other interest owners include Delek Drilling LP
with 45.34 percent and Ratio Oil Exploration LP with 15 percent
interest.
Noble Energy holds a 25 percent working interest in the Tamar
project. Additional partners include Isramco Negev 2 LP with 28.75
percent, Delek Drilling LP with 22 percent, Tamar Petroleum Ltd.
with 16.75 percent, Dor Gas Exploration with 4 percent and Everest
Infrastructures with 3.5 percent.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20191002005229/en/
Investor Contacts Brad Whitmarsh
(281) 943-1670 Brad.Whitmarsh@nblenergy.com
Kim Hendrix (281) 943-2197 Kim.Hendrix@nblenergy.com
Park Carrere (281) 872-3208 Park.Carrere@nblenergy.com
Media Contacts Trudi Boyd (281)
569-8009 media@nblenergy.com
Paula Beasley (281) 876-6133 media@nblenergy.com
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