Leviathan, Tamar sales commitments hiked

Oct. 2, 2019

Noble Energy Inc. and partners in deepwater Leviathan and Tamar natural gas fields offshore Israel have amended their agreements with an Egyptian gas buyer to more than double firm volume commitments.

OGJ editors

Firm quantities under contracts with Dolphinus Holdings Inc., a consortium of Egyptian industries, now total 3 tcf. Contract terms have been extended to 15 years from 10 years.

Under the changes, Noble and partners commit to supply 200 MMcfd of gas from Leviathan field during Jan. 1-June 30, 2020; 350 MMcfd from Leviathan and 100 MMcfd from Tamar during July 1, 2020-June 30, 2022; and 450 MMcfd from Leviathan and 200 MMcfd from Tamar during July 1, 2022-Dec. 31, 2034.

The earlier contracts provided for a firm commitment of 1.15 tcf from Leviathan field and interruptible supply of 1.15 tcf from Tamar.

Both contracts have take-or-pay commitments. During July 1, 2020-June 30, 2022, Leviathan supply will compensate for any shortfall against firm commitments from Tamar.

Noble expects Leviathan to start producing by yearend. Tamar is on production.

Noble holds a 39.66% working interest in Leviathan. Other interests are Delek Drilling LP, 45.34%, and Ratio Oil Exploration LP, 15%.

Noble’s Tamar interest is 25%. Parters are Isramco Negev 2 LP, 28.75%; Delek Drilling, 22%; Tamar Petroleum Ltd., 16.75%; Dor Gas Exploration, 4%; and Everest Infrastructures, 3.5%.