Noble Reports East Med Milestones
Noble Energy said May 1 that its Leviathan gas development, offshore Israel, is 45% complete.
Operator Noble said the venture remains “on budget and on schedule” for “first gas sales anticipated by the end of 2019.” Construction of the platform is progressing (see photo below), while a drill rig arrived on site in March and drilled Leviathan well-3 to depth in early April, it told investors. A pipelay vessel is also on-site, it added, which has completed installation of infield pipes and is now installing pipes to shore.
It noted that over 900mn ft3/d from Leviathan is under contract already: including a "firm" 350mn ft3/d contract to Dolphinus (Egypt) for ten years signed in 1Q, and a roughly 40mn ft3/d agreement for gas starting 2Q2018 initially from Tamar but then from Leviathan (upon the latter’s start-up) to supply existing power generation in Israel.
The US independent reported 1Q results May 1: net income attributable to Noble was $554mn, up from a $36mn profit in 1Q2017. Adjusted net income in 1Q2018, excluding exceptionals, was $172mn.
Noble also noted that March 2018 marked the five-year anniversary of first gas from Israel’s Tamar field, which reached cumulative production of 1.5 trillion ft3 since start-up. During 1Q2018, Tamar sold 959mn ft3/d gross (so by Noble and partners), a new quarterly record for the field, at an average realised $5.48/’000 ft3. Noble also completed its sale of a 7.5% Tamar working interest in March 2018.
Net worldwide sales production in 1Q2018 for Noble was 361,000 barrels of oil equivalent per day, 18% higher year on year, driven mainly by growth in Noble’s US onshore production that reached 237,000 boe/d. Sales from its mainly oil assets in the west Texas Delaware basin helped that growth. West Africa sales volumes of 56,000 boe/d (30% oil) remained reliable, it said, pointing to stronger liquids prices at its gas-based Equatorial Guinea methanol and LPG joint ventures. It added that it is “progressing negotiations with all stakeholders to monetise significant discovered Gas in Equatorial Guinea and Cameroon.”
Photo credit: Noble Energy