Noble Energy to supply natural gas to NEPCO
Under terms of the GSPA, Noble Energy and the Leviathan partners will supply a gross quantity of approximately 1.6 trillion cubic feet (Tcf) of natural gas from the Leviathan field, or 300 million cubic feet per day (MMcf/d) over a 15-year term.
The buyer has an option to purchase an incremental 50 MMcf/d for a total of up to 350 MMcf/d.
Natural gas supplied under this agreement will include industry-typical take-or-pay commitments, with pricing linked to Brent oil and a firm floor price. Gross contract revenues are estimated to be approximately $10 billion.
This GSPA follows a previously-announced agreement with the Jordan Bromine Company and the Arab Potash Company, which will establish first gas exports to Jordan from the Tamar field in late 2016.
The Company expects to complete construction and field development to deliver first gas from Leviathan in as little as three years following sanction. Subject to regulatory approvals from Israel and Jordan, sales to NEPCO are anticipated to commence at field startup.
The initial Leviathan field development will be a subsea tie-back to a shallow-water platform with a pipeline connection through to Jordan.
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 22 Tcf of recoverable natural gas resources. ■