Noble commits Leviathan, Tamar gas volumes to Egypt
Noble Energy has signed agreements to sell gas from the deepwater Leviathan and Tamar fields offshore Israel to Dolphinus Holdings for onward delivery to in Egypt.
The 10-year agreements, one for each field, both provide for total contract quantities of 1.15 tcf, likely to supply industrial users and petrochemical facilities and future power generation schemes in Egypt.
Sales volumes under the agreement associated withLeviathan will be at a probable firm rate of around 350 MMcf/d when production starts at the end of next year.
In Tamar’s case, sales volumes are set to begin at an interruptible rate of up to 350 MMcf/d, depending on gas availability beyond existing client obligations in Israel and Jordan.
Noble will hold an option to convert the Tamar interruptible quantity to a firm basis with what the company describes as a significant take or pay commitment.
Gary W. Willingham, executive vice president, Operations, said: “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.”
Noble anticipates revenues from the Leviathan contract of close to $7 billion at recent Brent prices, with Tamar’s potential revenues likely to be similar, dependent on actual volumes sold.
Both agreements are subject to regulatory approvals and finalizing of gas transportation agreements.