Noble Energy Inc. (NBL) and its partners signed a letter of
intent to sell natural gas from the Tamar field, off the coast of
Israel, to its state-owned electric company over a 15-year period.
The deal potentially could produce $9.5 billion in revenue for the
consortium.
Israel Electric Corp. plans to purchase at least 95 billion
cubic feet of natural gas a year, with potential to buy
significantly more during the first 15 years after the field enters
production. Noble estimates the deal could produce annual revenue
of $400 million to $750 million.
The oil-and-gas producer operates the Tamar field, and has a 36%
working interest, the biggest stake. Partners include Isramco Negev
2 LP (ISRA.L.TV), with a 29% stake, and Delek Drilling LP
(DEDR.L.TV) and Avner Oil Exploration LP (AVOGF, AVNR.L.TV) at 16%
each.
Noble Chairman and Chief Executive Charles D. Davidson said,
"The progress on both the development and marketing of Tamar
continues to move us along towards first production in 2012,
consistent with our original projections."
The company and its partners now have signed letters of intent
for natural gas sales with estimated total revenue of $10.5
billion. Noble has estimated Tamar's total gross mean resources at
6.3 trillion cubic feet of gas.
Its shares closed in Thursday's shortened session at $72.83 and
didn't trade premarket. Markets were closed Friday for the
Christmas holiday.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;