Noble Energy, the operator of the Leviathan gas field off the Israeli coast, has executed a gas sales and purchase agreement (GSPA) to supply natural gas from the Leviathan field to the National Electric Power Company (NEPCO) of Jordan for consumption in power production facilities.
Under the terms of the GSPA, Noble Energy and the Leviathan partners will supply a gross quantity of approximately 1.6 Tcf (45 bcm) of natural gas from the Leviathan field, or 300 mcf/d (8.5 mcm/d or 3.1 bcm/year) over a 15-year period. NEPCO has an option to purchase an incremental 50 mcf/d (1.4 mcm/d or 0.5 bcm/year) for a total of up to 350 mcf/d (3.6 bcm/year). Natural gas supplied under this agreement will include industry-typical take-or-pay (ToP) commitments, with pricing linked to Brent oil and a firm floor price.
The Company expects to complete construction and field development to deliver first gas from Leviathan in 2019 or 2020. Subject to regulatory approvals from Israel and Jordan, sales to NEPCO are anticipated to commence at field startup. The initial Leviathan field development will be a subsea tie-back to a shallow-water platform with a pipeline connection through to Jordan.
Noble Energy operates Leviathan with a 39.66% working interest. Other interest owners are Delek Drilling and Avner Oil Exploration with 22.67% each, and Ratio Oil Exploration with the remaining 15%.
This GSPA follows a previously-announced agreement with the Jordan Bromine Company and the Arab Potash Company, which will establish first gas exports to Jordan from the Tamar field in late 2016.