Noble Energy has executed a non-binding Letter of Intent (LOI) to supply natural gas from the Leviathan field, offshore Israel, to the National Electric Power Company (NEPCO) of Jordan. Under terms of the LOI, Noble Energy and the Leviathan partners will supply a base gross quantity of 1.6 Tcf (45 bcm) of natural gas from the Leviathan field over a 15-year term (3 bcm/year). Sales volumes under the agreement are anticipated to begin at a rate of 300 mcf/d (8.5 mcm/d). Delivery of natural gas is expected to occur at a border location between Israel and Jordan, following the completion of related pipeline infrastructure. The price for the natural gas is based primarily on a linkage to Brent oil prices and is dependent on negotiations of a binding agreement. A final gas purchase and sales agreement is expected to be completed in 2014 and will be subject, among other conditions, to the receipt of regulatory approvals in Israel and Jordan.
Noble Energy operates Leviathan with a 39.66% working interest. Other interest owners are Delek Drilling with 22.67%, Avner Oil Exploration with 22.67%, and Ratio Oil Exploration with the remaining 15%. The Leviathan field has an estimated 22 Tcf (about 620 bcm) of discovered natural gas resources.