Egyptian group to buy Leviathan, Tamar gas

Noble Energy Inc. has signed agreements to sell 1.5 tcf of natural gas each from Leviathan and Tamar deepwater gas fields off Israel to an industrial consortium in Egypt. Noble said the consortium, Dolphinus Holdings Ltd., will supply industrial and petrochemical customers and future power generation in Egypt.

Noble Energy Inc. has signed agreements to sell 1.5 tcf of natural gas each from Leviathan and Tamar deepwater gas fields off Israel to an industrial consortium in Egypt.

Noble said the consortium, Dolphinus Holdings Ltd., will supply industrial and petrochemical customers and future power generation in Egypt.

Gas sales from Leviathan are to begin at a firm rate of about 350 MMcfd when the field starts production at the end of 2019.

The agreement for Tamar, which is on production, provides for an interruptible rate of as much as 350 MMcfd, depending on gas availability beyond existing customer obligations in Israel and Jordan.

Noble, operator of both fields, will have the option to convert the Tamar interruptible quantity to a firm basis with a take-or-pay commitment. Both contracts have 10-year terms.

Gary W. Willingham, Noble’s executive vice-president, operations, said the company now has agreements for Leviathan gas totaling nearly 900 MMcfd. Its target sales rate for the field is 1 bcfd.

The new Leviathan and Tamar contracts link gas prices to Brent crude oil prices.

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