HOUSTON – Noble Energy Inc. and its partners have agreed to supply natural gas from the Leviathan field offshore Israel to Jordan’s National Electric Power Co. (NEPCO) for power production facilities.
Under the terms of the gas sales and purchase agreement the partnership will deliver around 1.6 tcf, or 300 MMcf/d, over a 15-year period.
NEPCO also has an option to purchase an incremental 50 MMcf/d, lifting the volume to 350 MMcf/d.
Gas supplied will include take-or-pay commitments, with pricing linked to Brent oil and a firm floor price. Noble anticipates gross contract revenues of around $10 billion.
J. Keith Elliott, Noble’s senior vice president, Eastern Mediterranean, said: “Including Israel sales contracts, this brings total contracted volumes to between 400 MMcf/d and 450 MMcf/d.
“The approved plan of development incorporates an expandable platform, which will enable us to accelerate Leviathan first gas while maintaining the ability to increase production capacity to meet growing future demand.
“While continuing to advance negotiations with additional Israeli industrial and power companies and other regional customers, we are also progressing the other work streams necessary for a final investment decision as early as the end of 2016.”
Noble expects to complete construction and field development to deliver first gas from Leviathan within three years following sanction. Subject to regulatory approvals from Israel and Jordan, sales to NEPCO should begin at field start-up.
The initial Leviathan field development will be a subsea tieback to a shallow-water platform with a pipeline connection through to Jordan.
Noble operates Leviathan with a 39.66% interest, in partnership with Delek Drilling, Avner Oil Exploration and Ratio Oil Exploration (1992). Leviathan holds an estimated 22 tcf recoverable.
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