Egypt gas deal could lead to expansion of Tamar

Noble Energy (NYSE: NBL) and its partners in the Tamar gas field offshore Israel have reached the basis for a sales agreement with Union Fenosa Gas SA (UFG).

Offshore staff

HOUSTONNoble Energy (NYSE: NBL) and its partners in the Tamar gas field offshore Israel have reached the basis for a sales agreement with Union Fenosa Gas SA (UFG).

Under the letter of intent, they will export up to 2.5 tcf over 15 years from Tamar to UFG’s natural gas liquefaction facilities in Egypt. This equates to around 440 MMcf/d.

Keith Elliott, Noble Energy’s senior vice president, Eastern Mediterranean, said: “The associated expansion of the Tamar field facilities, subject to final investment decision of the Tamar partners, will not only enable substantial regional exports, but it will also increase the capacity for natural gas deliveries to Israel’s domestic market.

“Building on the recent agreements with the Palestinian Power Generation Co., as well as the Arab Potash andJordan Bromine Companies, this agreement continues to demonstrate our ability to accelerate value and strengthen economic growth for stakeholders across the Eastern Mediterranean region.”

All parties aim to finalize the agreement within six months, subject to regulatory approvals in Israel and Egypt.

Noble’s partners in Tamar, which has roughly 10 tcf of discovered resources, are Isramco Negev 2, Delek Drilling, Avner Oil Exploration, and Dor Gas Exploration with the remaining 4%.

05/06/2014

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