Noble Energy has signed a gas sales agreement with NBL Eastern Mediterranean Marketing, Arab Potashand the Jordan Bromine Company, both of which are located in Amman, Jordan. Under terms of the agreement, Noble Energy will supply natural gas from the Tamar field, offshore Israel, to Arab Potash and Jordan Bromine for use in their facilities near the Dead Sea. Natural gas sales are anticipated to commence in 2016, once minimal required pipeline infrastructure has been completed. The agreement is for an initial term of 15 years and a total gross contract quantity of approximately 66 bcf (1.9 bcm, i.e. about 125 mcm/year) of natural gas. The price for the natural gas sold will be based on a floor price of at least US$6.50/1000 cf of natural gas with upside linked to Brent crude oil prices. Gross revenues are estimated at US$500m, with actual sales dependent on final purchased quantities and oil prices at the time of sale.
Noble Energy operates Tamar with a 36% working interest. Other interest owners are Isramco Negev 2 with 28.75%, Delek Drilling with 15.625%, Avner Oil Exploration with 15.625%, and Dor Gas Exploration with the remaining 4%. The Tamar field has an estimated 10 Tcf (283 bcm) of discovered natural gas resources.
Source: Noble Energy