Noble Energy signs $15bn natural gas supply deal with Egyptian firm

21 February 2018 (Last Updated February 21st, 2018 11:49)

Noble Energy and its partner Delek Drilling have signed agreements to export natural gas from the Leviathan and Tamar fields in Israel to Egyptian firm Dolphinus Holdings in a $15bn deal. 

Noble Energy signs $15bn natural gas supply deal with Egyptian firm
Side View of the Tamar Platform III Production. Credit: Delek Group.

Noble Energy and its partner Delek Drilling have signed agreements to export natural gas from the Leviathan and Tamar fields in Israel to Egyptian firm Dolphinus Holdings in a $15bn deal.

Under the agreements, Dolphinus will receive 1.15 trillion cubic feet of natural gas each from the Leviathan and Tamar fields for a period of ten years.

The buyer is expected to use the natural gas to meet demand from industrial and petrochemical customers, as well as future power generation in Egypt.

Under the agreement related to the Leviathan field, the sale is expected to begin at a firm rate of around 350 million cubic feet of natural gas per day (MMcf/d) when the project will begin production at the end of next year.

The sale from the Tamar field is subject to availability of gas after domestic customer obligations in Israel and Jordan are met.

Noble Energy operations executive vice-president Gary Willingham said: “These agreements continue to demonstrate the strength of the regional market for our natural gas in the Eastern Mediterranean.

“This will put billions into the state treasury to benefit the education, health and social welfare of Israel’s citizens.”

“At Leviathan, we have executed agreements totalling nearly 900Mcf/d and are closing in on our targeted sales volume amount of 1Bcf/d.”

The agreements are conditional upon closing conditions that include regulatory approvals and licences, as well as finalising gas transportation agreements.

Welcoming the deal, Israel Prime Minister Benjamin Netanyahu said: “I welcome the historic agreement that was announced on the export of Israeli gas to Egypt.

“This will put billions into the state treasury to benefit the education, health and social welfare of Israel’s citizens.”

Last month, Noble Energy signed a deal to offload a 7.5% working interest in the Tamar field to Tamar Petroleum for total consideration of $560m in cash and 38.5 million shares of Tamar Petroleum.

Prior to the agreement, Noble Energy owned a 32.5% working interest in the Tamar field.

The company’s interest in the Leviathan field stands at 39.66%.