Noble sanctions $3B development of massive Tamar natural gas field offshore Israel

Source: Noble Energy

Noble Energy, Inc. (NYSE:NBL) sanctioned the massive Tamar natural gas project offshore Israel. Discovered in 2009, the Tamar natural gas field is operated by Noble Energy and has total recoverable resources estimated at 8.4 trillion cubic feet of natural gas. 

Initial development of Tamar will include five subsea wells capable of flowing 200 to 250 million cubic feet per day (Mmcf/d) of natural gas each. Production will be gathered at the field and delivered via two 16-inch flowlines to a new platform, which will be constructed adjacent to the existing Mari-B structure. The Tamar platform will tie into the existing 30-inch pipeline that delivers natural gas to the Ashdod onshore receiving terminal, with an initial processing capacity up to 1.0 billion cubic feet of natural gas per day. 

The project design and connectivity to Mari-B will also provide for gas injection and withdrawal in the Mari-B reservoir. In addition, the development will allow for significant expansion as the market for natural gas grows. 

Charles D. Davidson, Noble Energy's Chairman and CEO, said, "Noble Energy continues to make outstanding progress on our lineup of major projects. We now have key developments under way in each of our core areas and significant growth is rapidly approaching. Tamar represents a critically important project for our Company, our partners, and the State of Israel. 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." 

Gross capital cost for Tamar is estimated at $3.0 billion ($1.1 billion net to Noble Energy). The majority of key project components have been awarded and development drilling is scheduled to commence by early 2011. Project installation is expected to be complete and commissioning initiated in the fourth quarter of 2012. 

Noble Energy operates Tamar, offshore Israel in the Matan license, with a 36 percent working interest. Other interest owners are Isramco Negev 2 with 28.75 percent, Delek Drilling with 15.625 percent, Avner Oil Exploration with 15.625 percent and Dor Gas Exploration with the remaining 4 percent. 

Noble Energy is also the operator of Mari-B with a 47.059 percent working interest. Delek Drilling has a 25.5 percent interest, Avner Oil Exploration holds 23 percent and Delek Investment has 4.441 percent.

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