Noble Energy has signed a Head of Agreement with the Government of the Republic of Equatorial Guinea and important third parties for setting up a framework to develop natural gas from offshore field Alen.
The agreement covers the commercial terms for Alen natural gas to be processed through Alba Plant’s Liquefied Petroleum Gas plant and EGLNG’s Liquefied Natural Gas (LNG) facility, both of which are located in Punta Europa.
The contemplated structure would lead to the Alen field partners and the EG LNG owners gaining access to global LNG markets.
Sanction of the project is based on the final commercial agreements being executed.
Noble Energy executive vice president for operations Gary W Willingham said: “This is a significant milestone as it marks the first step to monetising a substantial amount of gas from the Alen field through existing infrastructure on Bioko Island.
“This project will transform the Alen platform into an offshore hub for potential development of additional gas fields nearby. First production is anticipated early in the next decade.”
To process the Alen gas, the current production and processing facilities at the Alen platform and Punta Europa will need some minor modifications.
The deal anticipates development of a 65km pipeline to transport gas from the Alen platform to Punta Europa facility.
The pipeline will be equipped with the capacity to handle production from several fields.
Located in Blocks O and I, the Alen field has been generating natural gas and condensate since 2013.
The natural gas is re-injected into the reservoir to boost liquids recovery.
According to the company, an incremental 600 billion cubic feet of gross natural gas equivalent resources from the Alen field are estimated to be recoverable as a result of the project.
Noble Energy has 45% working interest in the field and holds 28% non-operated working interest in the Alba facility.