U.S.' Noble Energy signed a gas sales and purchase agreement (GSPA) with the NEPCO, a power company in Jordan, to sell approximately three billion cubic meters of natural gas per year, Nobel announced Monday.
According to the GSPA agreement, the company will supply natural gas from Israel's Leviathan field to the National Electric Power Company Ltd. (NEPCO) of Jordan for consumption in power production facilities, the company's press release said.
"Noble Energy and the Leviathan partners will supply a gross quantity of approximately 1.6 trillion cubic feet, tcf [around 45 billion cubic meters, bcm] of natural gas from the Leviathan field, over a 15-year term," it said in the press release.
The company proclaimed that the natural gas will include industry-typical take-or-pay commitments, with pricing linked to Brent oil and a firm floor price. The gross contract revenues are estimated to be approximately $10 billion.
Noble Energy said in its press release that the GSPA follows a previously-announced agreement with the Jordan Bromine Company and the Arab Potash Company, which will establish first gas exports to Jordan from the Tamar field in late 2016.
The initial Leviathan field development will be a subsea tie-back to a shallow-water platform with a pipeline connection through to Jordan. The company expects to complete construction and field development to deliver first gas from Leviathan in as little as three years following the agreement's sanctioning, according to the press release.
"We look forward to supplying natural gas resources for energy and economic development to the people of Jordan. This first export of the GSPA for Leviathan further underpins the volumes supporting the project's sanction. Including Israel sales contracts, this brings total contracted volumes to between 400 million cubic feet per day (MMcf/d) and 450 MMcf/d.
"The approved Plan of Development incorporates an expandable platform, which will enable us to accelerate Leviathan first gas while maintaining the ability to increase production capacity to meet growing future demand. While continuing to advance negotiations with additional Israeli industrial and power companies and other regional customers, we are also progressing the other work streams necessary for a Final Investment Decision as early as the end of 2016."J. Keith Elliott, Noble's senior vice president for Eastern Mediterranean, said.
Noble Energy operates the Leviathan field with a 39.66 percent working interest. Other interested owners are Delek Drilling with 22.67 percent, Avner Oil Exploration with 22.67 percent, and Ratio Oil Exploration (1992) Limited Partnership with the remaining 15 percent. The Leviathan field has an estimated 22 tcf (622 bcm) of recoverable natural gas resources.
Noble Energy is an independent oil and natural gas exploration and production company with a portfolio of both U.S. unconventional and global offshore conventional assets spanning three continents.
By Muhsin Baris Tiryakioglu