Continental Focus, International Reach

Noble Approves Alen Development

Sunday, April 7, 2019

Noble Energy approved the Alen natural gas development offshore Equatorial Guinea. Natural gas from the Alen field will be processed through the existing Alba Plant LPG processing plant and EG LNG’s liquefied natural gas production facility located at Punta Europa on Bioko Island.

Definitive agreements in support of the project were executed between the Alen field partners, the Alba Plant and EG LNG plant owners, as well as the government of Equatorial Guinea.

J.Keith Elliott, Noble Energy’s senior VP, Offshore, stated: “We are excited to announce this high-return, capital-efficient development as our next offshore major project. First production is anticipated in the first half of 2021, following on our world-class Leviathan project which is expected to begin producing late this year. The Alen development is the first step towards creating an offshore natural gas hub in E.G., which will open the potential for future monetization of additional discovered resources through existing infrastructure. Noble Energy has discovered three trillion cubic feet of gross natural gas resources in the Douala Basin, which positions us well for LNG sales exposure over the coming decade. These offshore major projects continue to differentially position Noble Energy to deliver substantial free cash flow and value to our shareholders.”

The Alen field initially commenced operation in 2013 as a condensate production and natural gas recycling project. Natural gas from the field has been produced and reinjected into the reservoir to support the enhanced recovery of liquids since startup. Primary condensate will continue to be produced and transported to the Aseng field production, storage and offloading vessel for sales.

The Alen gas monetization project will utilize the existing three high-capacity production wells on the platform, with minor modifications necessary to deliver sales gas from the platform to the Alba Plant and EG LNG facilities. A 24-inch pipeline capable of handling 950 million cubic feet of natural gas equivalent per day (Mmcfe/d) will be constructed to transport all natural gas processed through the Alen platform approx. 70 kms to the onshore facilities.

At start-up, natural gas sales from the Alen field are anticipated to be between 200 and 300 Mmcfe/d, gross (~75 to 115 Mmcfe/d net to Noble Energy). The wet gas stream will be tolled through the Alba Plant for additional liquids recovery before converting dry gas into LNG via the EG LNG facility. The Company anticipates that Alen natural gas sales will grow modestly as open capacity in the EG LNG plant increases due to declining Alba field production.

Noble and partners will maintain ownership of the hydrocarbons through the processing facilities, and the company will be progressing negotiations for offtake agreements to sell the LNG in global markets. Total estimated gross recoverable resources from the Alen field are approximately 600 Bcf of natural gas equivalent.

Gross capital expenditures for the development are estimated to be $330 million. Capital expenditures for the project will be incurred in 2019 and 2020, and these amounts have already been included in Noble’s previously communicated capital expenditure guidance.

The Alen field straddles Equatorial Guinea’s Block O and Block I, in which Noble holds stakes of 95% and 5% respectively. It operates the Alen field with a 45% interest. Other Block O interest owners include Glencore with 25% and GEPetrol with the remaining 30%. Other Block I interest owners include Glencore with 23.75%, Atlas with 27.55%, GEPetrol with 5% and Gunvor with the remaining 5.7%.

Noble Energy holds a 28% working interest in the Alba Plant which is operated by Marathon Oil Corp. The EG LNG facility is also operated by Marathon Oil Corporation. Noble Energy does not hold working interest in the EG LNG facility.