Israeli gas project gets formal go-ahead

Noble Energy has sanctioned the deepwater Tamar gas development offshore Israel.

Offshore staff

HOUSTON -- Noble Energy has sanctioned the deepwater Tamar gas development offshore Israel. The field, discovered in 2009, has recoverable resources estimated at 8.4 tcf.

Initially, development will be based on five subsea wells each designed to flow 200-250 MMcf/d. Production will be gathered at the field center and exported via two 16-in. (40.6-cm) flowlines to a new platform, to be erected next to the Mari-B structure in shallow water off southern Israel. The Tamar platform will tie into the existing 30-in. (76-cm) pipeline that sends gas to the Ashdod onshore reception terminal, with initial processing capacity up to 1 bcf/d. Noble adds that there will be scope for future gas injection and withdrawal in the Mari-B reservoir, and that the development will allow for significant expansion as Israel’s gas demands grow.

Charles D. Davidson, Noble Energy's chairman and CEO, said, "Ensuring that we are able to meet the near and longer-term needs of Israel's growing gas market will support the State's continued commitment to natural gas as the energy source of the future."

The company estimates the project’s gross capital cost at $3 billion ($1.1 billion net to Noble). Most of the main equipment components and installation contracts have been awarded, with development drilling due to start by early 2011. Project installation should be complete and commissioning under way during 4Q 2012.

Noble operates Tamar, in the offshore Matan license, in partnership with Isramco Negev 2, Delek Drilling, Avner Oil Exploration, and Dor Gas Exploration.

09/23/2010

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