Noble gas project off Israel marks further progress

July 2, 2002
Houston-based Noble Energy Inc. and partners have signed a final definitive agreement with an Israeli power utility covering sale of natural gas from their field off Israel.

By OGJ editors

HOUSTON, July 2 -- Houston-based Noble Energy Inc. and partners have signed a final definitive agreement with an Israeli power utility covering sale of natural gas from their field off Israel.

The deal marks the latest progress in the first commercial gas field development off a country long deemed bereft of hydrocarbon potential—until a string of world-class gas discoveries was made by foreign firms in recent years (OGJ, May 20, 2002, p. 22)

Officials of Noble and its partners Delek Drilling Limited Partnership, Avner Oil Exploration Ltd. Partnership and Delek Investments & Properties Ltd. late last month formally executed the final definitive gas sales agreement with Israel Electric Corp. Ltd.

Initially, the IEC supply contract is for 630 bcf of natural gas over 11 years.

Earlier in June, Noble Energy Inc., Houston (formerly Noble Affiliates Inc.), was granted a license from the Israeli government to build an offshore pipeline from the company's Mari-B field to Ashdod. The direct route to Ashdod (see map, OGJ, May 14, 2001, p. 9), Noble said, would allow the company and its partners to supply gas to IEC's power station at Ashdod in the beginning of the fourth quarter of 2003-earlier than previously expected. The pipeline would have ultimate capacity of 600 MMcfd.

Progress on construction of the jacket, platform, and other production equipment continues on schedule, and costs remain within budget, Noble said. The jacket and platform are scheduled for shipment to Israel this winter. Installation of the jacket, platform, and related production facilities are expected to be completed in third quarter.