Israel utility signs to buy Tamar field gas

Dalia Power Energies, a private power company in Israel, has signed a letter of intent to buy natural gas from the Noble Energy Inc. group’s Tamar gas field in the Mediterranean off Israel.

By OGJ editors
HOUSTON, Dec. 15
-- Dalia Power Energies, a private power company in Israel, has signed a letter of intent to buy natural gas from the Noble Energy Inc. group’s Tamar gas field in the Mediterranean off Israel.

Dalia Power has a license to build a gas-fired power plant in Israel with operations planned to begin 2013.

Noble Energy and its partners will deliver 200 bcf to Dalia Power under a 17-year supply agreement in exchange for at least $1 billion in total revenue. Sales volumes may be hiked to 700 bcf depending upon the final size of the power plant and extent of operations.

The Noble Energy group is continuing discussions with other customers regarding the supply of natural gas from Tamar and plans to begin sales in 2012.

Noble Energy operates Tamar, in the Matan license off Israel, with a 36% working interest (see map, OGJ, Feb. 2, 2009, p. 39). The discovery well exposed a resource of 5 tcf of gas in formations above 16,000 ft in 5,500 ft of water 55 miles off Haifa.

Other interest owners are Isramco Negev 2 with 28.75%, Delek Drilling 15.625%, Avner Oil Exploration 15.625%, and Dor Gas Exploration 4%.

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