Noble Energy Expects Large Contracts for Tamar, Leviathan

US-based Noble Energy expects large contracts for its Eastern Mediterranean reserves in the coming quarters, capitalizing on a progressive convergence with Israeli authorities. 

‘The first regional export sales agreements for Tamar and Leviathan were signed during the quarter, with larger contracts expected to follow over the next several quarters. Significant progress has been made towards sanctioning the first phase of Leviathan with an agreement reached with the Israeli Anti-trust Authority and the receipt of a Development and Production Lease,’ reads a note released on Thursday.

In the Eastern Mediterranean, total Israel sales volumes for the first quarter of 2014 averaged 219 MMcfe/d.

“The progress we have made recently regarding the Leviathan project offshore Israel has been remarkable, and we are close to executing a number of domestic and regional export sales agreements to support the field's development,” Charles Davidson, Noble Energy's Chairman and CEO, commented. 

The company is also expecting to meet the deadlines for the onshore compression project. According to the communiqué, the onshore compression project at Ashdod is over 50% complete and on track to expand the deliverability of Tamar volumes in mid- 2015.

According to a note released last month by Woodside, the lack of consensus between investors and Israeli Government will slow down Leviathan partners. The companies postponed the signing of the binding agreement setting up the joint venture.