Continental Focus, International Reach

Dolphinus Doubles Gas Intake Contract from Israel’s Leviathan and Tamar Fields

Thursday, October 17, 2019

Noble Energy and its partners have amended their agreements for the sale of natural gas to Egypt’s Dolphinus Holdings Limited from the Leviathan and Tamar fields offshore Israel. The deal is valued at $19.5 billion.

The amended agreements now provide for total combined firm contract quantities of 3 trillion cubic feet (Tcf) of natural gas, more than doubling the firm volume commitments previously agreed. In addition, each agreement has been extended by five years to reflect 15-year terms.

The long idle East Med Gas Pipeline (EMG) will now transport gas in both directions. The EMG links Ashkelon in southern Israel to al-Arish in Egypt’s northern Sinai.

Beginning January 1, 2020 and throughout the contract term, the Company and its partners have committed to supply volumes as summarized below:

  • January 1, 2020 – June 30, 2020: Leviathan 200 (MMcf/d) of natural gas
  • July 1, 2020 – June 30, 2022: Leviathan 350 MMcf/d, Tamar 100 MMcf/d
  • July 1, 2022 – December 31, 2034: Leviathan 450 MMcf/d, Tamar 200 MMcf/d

These contracts replace the previous firm commitment of 1.15 Tcf from the Leviathan field and the previous interruptible quantity of 1.15 Tcf from the Tamar field. Both contracts include take or pay commitments. During the two-year period ended June 30, 2022, Leviathan will backstop any volume commitment that Tamar is unable to deliver under the amended agreement.

David L. Stover, Noble Energy’s Chairman and CEO, stated, “This agreement is a major step for Noble Energy’s Eastern Mediterranean projects, expanding the long-term export demand in the region. The supply flexibility between assets will enable Tamar to continue producing at high rates, while Leviathan grows rapidly toward its initial capacity. With first gas from Leviathan anticipated by the end of the year, this agreement provides further clarity to our 2020 cash flow profile and beyond.”

The amended agreements are subject to certain regulatory approvals. In addition, the Company and its partners are working to complete the acquisition of interest in the EMG pipeline, which is anticipated to occur early in the fourth quarter of 2019.