Noble Energy Inc. expects most curtailed production volumes to be brought back on production by end-July as netback pricing and operating costs improve, the company said in a press statement July 9.
During this year’s second quarter, the company’s curtailments averaged 11,000 b/d of oil, which totaled 32,000 boe/d on a net basis. US onshore oil production capacity averaged 124,000 b/d in the second quarter (113,000 b/d sold and 11,000 b/d curtailed), reflecting strong base and wedge performance from the Denver-Julesburg and Delaware basins, the company said.
In May, following rounds of capital expenditure cuts, the company expected full year capital expenditures of $750-850 million, $575 million of which were earmarked for US onshore for full-year 2020. The remainder was expected to be allocated for major project developments and necessary pipeline infrastructure in Equatorial Guinea and Israel (OGJ Online, May 8, 2020).
The Alen gas monetization project in Equitorial Guinea continues to progress towards an early 2021 start-up, the company said July 9. Offshore pipeline installation remains on schedule for the third quarter with final hookup and commissioning in late 2020 (OGJ Online, Apr. 2, 2019).
Pipeline expansion work in Israel continues. Noble and its partners are finalizing commissioning of newly-installed compression onshore at the Ashkelon metering station in Israel to enable increasing sales volumes into Egypt via the EMG Pipeline (OGJ Online, Jan. 15, 2020). Final commissioning is expected to be completed by mid-July.
In June, Noble was awarded concessions on two exploration blocks offshore the Western Desert area of Egypt. Final awards of Blocks 6 and 7 are expected later this summer. Noble will hold a 27% non-operated working interest in the position, with Shell Egypt (through subsidiary BG Delta Ltd.) holding 63% equity as operator, in addition to Egyptian oil company Tharwa with 10%. Noble and partners have a 3-year initial phase of exploration during which a seismic program will be conducted targeting deepwater prospects with both oil and natural gas potential.
Complete second quarter results will be provided Aug. 7.