Noble Energy Receives Plan of Development Approval for Leviathan Field Offshore Israel
June 02 2016 - 8:45AM
Noble Energy, Inc. (Noble Energy or the Company) (NYSE: NBL)
today announced that it has received approval from the Petroleum
Commissioner in the Ministry of National Infrastructure, Energy and
Water Resources for the development of the Leviathan project
offshore Israel. The approved Plan of Development (POD)
contemplates a subsea system that connects production wells to a
fixed platform located offshore with tie-in onshore in the northern
part of Israel. The fixed platform’s initial capacity is
anticipated to start at 1.2 billion cubic feet of natural gas per
day (Bcf/d) and is expandable to 2.1 Bcf/d. Leviathan is
expected to provide a second source of supply and entry point into
Israel’s domestic natural gas transport system, while also
delivering exports to regional countries.
The Company also announced the execution of a
gas sales and purchase agreement (GSPA) to supply natural gas from
the Leviathan field to IPM Beer Tuvia Ltd (IPM). Under terms
of the GSPA, Noble Energy and the Leviathan partners will
supply a gross quantity of up to 473 billion cubic feet of natural
gas to a new-build independent power facility over an 18-year term,
or up to 72 million cubic feet per day (MMcf/d). The Company
expects natural gas sales to IPM to commence at field startup.
The price for the natural gas is linked to the
Public Utility Authority Index and includes a firm floor price.
The Company expects total gross revenues under the contract
to be in excess of $2.5 billion. The agreement is subject to
regulatory approvals.
J. Keith Elliott, Senior Vice President, Eastern
Mediterranean, commented, “Receiving support from the Government of
Israel for the POD further builds upon recent regulatory momentum,
including the Israeli Government's approval of the revised
stability language in the Natural Gas Regulatory Framework as well
as the National Planning Committee’s approval of the offshore
location for the Leviathan platform and pipeline connection
onshore. In addition, Noble Energy and partners have made
quick progress marketing natural gas to new customers.
Combined with a prior executed sales agreement, we have now
contracted volumes from Leviathan to the Israel market in the
amount of approximately 100 MMcf/d, with substantial volumes yet to
contract in Israel and the region. Strong momentum on the
regulatory and marketing fronts represents major steps in advancing
the Leviathan project towards final investment decision.”
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.
Noble Energy (NYSE: NBL) is an independent oil
and natural gas exploration and production company with a
diversified high-quality portfolio of both U.S. unconventional and
global offshore conventional assets spanning three
continents. Founded more than 80 years ago, the company is
committed to safely and responsibly delivering our purpose:
Energizing the World, Bettering People’s Lives®. For more
information, visit www.nobleenergyinc.com.
Forward Looking Statements
This news release contains certain “forward-looking statements”
within the meaning of federal securities law. Words such as
“anticipates”, “believes”, “expects”, “intends”, “will”, “should”,
“may”, and similar expressions may be used to identify
forward-looking statements. Forward-looking statements are
not statements of historical fact and reflect Noble Energy’s
current views about future events. They may include estimates
of oil and natural gas reserves, estimates of future production,
assumptions regarding future oil and natural gas pricing, planned
drilling activity, future results of operations, projected cash
flow and liquidity, business strategy and other plans and
objectives for future operations. No assurances can be given
that the forward-looking statements contained in this news release
will occur as projected and actual results may differ materially
from those projected. Forward-looking statements are based on
current expectations, estimates and assumptions that involve a
number of risks and uncertainties that could cause actual results
to differ materially from those projected. These risks
include, without limitation, the volatility in commodity prices for
crude oil and natural gas, the presence or recoverability of
estimated reserves, the ability to replace reserves, environmental
risks, drilling and operating risks, exploration and development
risks, competition, government regulation or other actions, the
ability of management to execute its plans to meet its goals and
other risks inherent in Noble Energy’s business that are discussed
in its most recent annual report on Form 10-K and in other reports
on file with the Securities and Exchange Commission. These reports
are also available from Noble Energy’s offices or website,
http://www.nobleenergyinc.com. Forward-looking statements are
based on the estimates and opinions of management at the time the
statements are made. Noble Energy does not assume any
obligation to update forward-looking statements should
circumstances, management’s estimates, or opinions change.
The Securities and Exchange Commission requires oil and gas
companies, in their filings with the SEC, to disclose proved
reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally
producible under existing economic and operating conditions. The
SEC permits the optional disclosure of probable and possible
reserves, however, we have not disclosed the Company’s probable and
possible reserves in our filings with the SEC. We use certain terms
in this news release, such as “recoverable natural gas resources,”
which are by their nature more speculative than estimates of
proved, probable and possible reserves and accordingly are subject
to substantially greater risk of being actually realized. The SEC
guidelines strictly prohibit us from including these estimates in
filings with the SEC. Investors are urged to consider closely the
disclosures and risk factors in our most recent annual report on
Form 10-K and in other reports on file with the SEC, available from
Noble Energy’s offices or website,
http://www.nobleenergyinc.com.
Investor Contacts
Brad Whitmarsh
(281) 943-1670
brad.whitmarsh@nblenergy.com
Megan Repine
(832) 639-7380
megan.repine@nblenergy.com
Media Contacts
Reba Reid
(713) 412-8441
media@nblenergy.com
Paula Beasley
(281) 876-6133
media@nblenergy.com
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