Noble Energy to Spend $550mn on Leviathan in 2017

US producer Noble Energy will invest $550mn in the development of Israel's Leviathan gas field "with first gas targeted for the end of 2019," the company said in its guidance for 2017. This is about a fifth of its total spend for the year, which, at $2.3bn, is up by 50% from 2016.

Noble Energy announced February 13 better-than-expected results for Q4 2016 and the full year. The company reported a net loss of $998mn for 2016 compared with a net loss of $2.44bn in 2015. In the last quarter the company reported a net loss of $252mn compared with $2bn a year earlier. The heavy losses in Q4 2015 were mainly due to impairments.

Despite the net loss, the company registered a $1.3bn net cash from operating activities, a non-GAAP measure.

During 2016 Noble supplied Israel 281mn ft³/d of gas from Tamar, up 12% from 2015 (only its part) at an average price of $5.21/mn Btu, a drop of 13 cents. In Q4 the average price was $5.27/mn Btu, up 10 cents from Q4 2015.

"Capital expenditures in the Eastern Mediterranean for the initial development of the Leviathan project include drilling one production well, long-lead investment items, and ramp up of construction activities," the company said in a press release. "The company will also complete an additional production well at Tamar, which was drilled in the fourth quarter of 2016."

Ya'acov Zalel