Noble Energy Sells Three Percent Interest in Tamar Field, Offshore Israel, for $369 Million
July 05 2016 - 7:00AM
Noble Energy, Inc. (NYSE:
NBL) (“Noble Energy” or
“the Company”) today announced that it signed a definitive
agreement to divest a 3 percent working interest in the Tamar
field, offshore Israel, to the Harel Group (“Harel”), a leading
insurance provider and pension manager in Israel, in partnership
with Israel Infrastructure Fund (“IIF”), Israel’s largest
infrastructure private equity fund. The transaction value of
$369 million is based upon a gross pre-tax Tamar valuation of
approximately $12 billion and is subject to purchase price
adjustments between January 1, 2016 and the closing date.
Closing for the transaction is anticipated in the third
quarter of 2016, subject to customary terms and conditions, with
after-tax proceeds received expected to be approximately $275
million. Under terms of the agreement, Harel and IIF have the
option to elect, before closing, to purchase an additional 1
percent working interest from Noble Energy at the same valuation.
Gary W. Willingham, the Company's Executive Vice
President of Operations, commented, “This transaction reflects the
inherent value of our producing Tamar asset, which reliably fuels
more than half of Israel’s electricity generation today. It
also highlights the potential of our other undeveloped Levant Basin
discoveries, which share similar reservoir and well deliverability
characteristics and are poised to bring needed energy to a region
which is fundamentally short natural gas. We are excited
about partnering with Harel and IIF, which bring additional leading
Israeli investors into the project. These proceeds further
bolster our balance sheet in the near-term and will contribute to
our upcoming capital investments in Israel, including our initial
investment in the Leviathan project.”
Noble Energy and partners are planning to drill and complete an
additional development well at the Tamar field in response to the
continued increasing demand and outlook for natural gas usage
within Israel, as Israel displaces coal for clean-burning natural
gas. Drilling is anticipated to commence in the fourth
quarter of 2016. The additional producing well will further
enhance redundancy while meeting maximum deliverability for
extended peak demand periods. There is no material change to
the Company’s overall 2016 capital program.
Prior to the announced working interest sale,
Noble Energy operated the Tamar field with a 36 percent working
interest. The Company is carrying out an 11 percent sell-down
of its interest in the Tamar field in accordance with Israel’s
approved Natural Gas Regulatory Framework. Noble Energy
anticipates the sale of the remaining 7 to 8 percent working
interest over the next 36 months. Following completion of
this sell-down process, Noble Energy will retain a 25 percent
working interest and operatorship in the Tamar field, which has
recoverable gross mean natural gas resources of 10 trillion cubic
feet (Tcf).
The Tamar field sold 252 million cubic feet per
day, net, of natural gas and generated net pre-tax income of $318
million for Noble Energy in 2015.
Noble Energy also operates the Leviathan
field, offshore Israel, with a 39.66 percent working interest and
the Aphrodite field, offshore Cyprus, with a 35 percent working
interest. The Leviathan field has an estimated 22 Tcf of
recoverable gross natural gas resources, while Aphrodite holds an
estimated 4 Tcf of recoverable gross 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 gross mean natural gas
resource” and “recoverable gross natural gas resource,” 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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