Noble Energy, Inc. (NYSE: NBL) today announced the execution of a non-binding Letter of Intent (LOI) between the Leviathan field partners and BG International Limited (BG) for the supply of natural gas from the Leviathan field, offshore Israel, to BG's existing natural gas liquefaction (LNG) facilities in Egypt. The LOI contemplates a total gross sales quantity of up to 3.75 trillion cubic feet (Tcf) of natural gas over a 15-year period, or the equivalent of approximately 700 million cubic feet per day over the term. Delivery of the natural gas to BG is expected at the outlet of the Leviathan floating, production, storage, and offloading vessel, with planned connection to the LNG facilities by way of subsea pipeline.
Keith Elliott, Noble Energy's Senior Vice President, Eastern Mediterranean, commented, "The LOI for the export of natural gas from Leviathan is a very positive development for the project and continues to evidence the strong demand for our discovered resources. Phase 1 of the Leviathan project is designed to provide significant quantities of natural gas to Israel and regional markets. This transaction, in combination with regional cooperation, will also provide access for Eastern Mediterranean gas into global markets. Negotiations with other potential customers for Leviathan natural gas are progressing, and I anticipate additional agreements to be executed this year in support of the development of the first phase of Leviathan."
A final gas purchase and sales agreement is to be negotiated and will be subject to the receipt of regulatory approvals in Israel and Egypt.
Noble Energy operates Leviathan with a 39.66 percent working interest. Other interest owners are Delek Drilling with 22.67 percent, Avner Oil Exploration with 22.67 percent, and Ratio Oil Exploration (1992) Limited Partnership with the remaining 15 percent. The Leviathan field has an estimated 19 Tcf of discovered natural gas resources.