Noble Energy announced the commencement of natural gas production from the Leviathan field. Company announced the commencement of natural gas production from the Leviathan field. It is the largest natural gas field in the Eastern Mediterranean. The stock exchange move will allow to leverage Nasdaq’s cutting-edge technology.
The review was concluded with the sale of essentially all of the Company’s remaining U.S. onshore midstream interests. Basin and Delaware Basin well costs have been reduced a further $500 thousand per well. The pipeline will be used to transport natural gas volumes into Egypt under the Company’s gas supply agreements.
“This is a historic day for Noble Energy”, said David L. Stover, Noble Energy’s chairman and CEO.
The amended agreements now provide for total combined firm contract quantities of 3 trillion cubic feet. The safe and successful execution of the initial phase of Leviathan development has been world-class. The “Total Consideration” listed in the table above for each $1,000 principal amount of 2021 notes validly tendered.
U.S. onshore well costs have been reduced more than 15% in both the DJ. It continuing exceptional track record of major project delivery. The supply of natural gas from Leviathan will enhance Israel’s energy resilience. Leviathan project spend was more than $30 million under guidance in the third quarter.
First gas is online less than three years from project sanction and capital expenditures were $150 million under budget. Company excited to be joining many of the world’s largest and most innovative companies on Nasdaq. The contracts replace the previous firm commitment of 1.15 Tcf from the Leviathan field.
Combined with Tamar, Israel assets provide a differential production profile. Supports focus on delivering sustainable, long-term free cash flow for Noble Energy shareholders. Noble Energy’s net acquisition investment in the EMG Pipeline totaled $185 million. It enhances corporate returns through high-return midstream investments.
U.S. onshore volumes increased 30 MBoe/d (10 MBbl/d oil) from the second quarter 2019. The closing of the EMG acquisition will support delivery of natural gas from the Tamar. It enable further reduction of coal usage for electricity generation, significantly improve air quality.
The Leviathan field was discovered in 2010, and the initial development phase was sanctioned in 2017. DJ and Delaware Basin total volumes and oil volumes represented quarterly records. This acquisition, combined with recently announced Dolphinus gas sales contracts offtake increases.
During the two-year period ended June 30, 2022, Leviathan will backstop any volume commitment. Leviathan natural gas provides redundancy in supply domestically. Unit production costs were below guidance at $8.39 per BOE, driven by workover reductions, compression optimization and lower fuel costs.
It helps transition Israel to become a significant exporter of energy to regional and global customers for the first time. The EMG Pipeline is a 90-kilometer pipeline, located primarily offshore. This agreement is a major step for Noble Energy’s Eastern Mediterranean projects.
It would like to congratulate and thank the many individuals. The supply flexibility between assets will enable Tamar to continue producing at high rates. As of the Expiration Time, $742,623,000 aggregate principal amount of the 2021 notes were validly tendered. The acquisition of interest in the pipeline was contingent upon technical third-party recertification.
The unwavering dedication and commitment have been key to bringing Leviathan to production. The first phase of development consists of four production wells producing through two 18-inch. The Leviathan field was discovered in 2010, and the initial development phase was sanctioned in 2017.
“The supply of natural gas from Leviathan will enhance Israel’s energy resilience”, said J. Keith Elliott, the company’s senior vice president, offshore.
The Leviathan project is 96% complete, and the production decks were installed on the jacket in the third quarter. Noble Energy is an independent oil and natural gas exploration and production. The amended agreements are subject to certain regulatory approvals.
The first phase of development consists of four production wells producing through two 18-inch. An infield development well was drilled and completed under budget at the Aseng field in Equatorial Guinea. The Company operates a high-quality portfolio of assets onshore in the United States.
73-mile subsea tiebacks to a processing platform offshore northern Israel. Noble Energy continued its strong execution momentum in the third quarter. The Company expects to accept for payment all 2021 notes. The Offshore spend continues to trend below budget, primarily due to strong project execution at Leviathan.
It located approximately 80 miles offshore in 5,500 feet of water. Noble Energy holds a 39.66 percent working interest in the Leviathan project. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities. This is reflected in a $200 million reduction in our 2019 capital expenditures from original plan.
The field is estimated to have recoverable resources of 22 trillion cubic feet (Tcf) of natural gas from 35 Tcf of in-place resource. It preserves operational synergies and control of in-basin gathering in core U.S. onshore development areas. Noble Energy holds a 25 percent working interest in the Tamar project.
The first phase of development has a designed production capacity of 1.2 billion cubic feet of natural gas per day. The transaction announced today highlights significant midstream value within Noble Energy. Noble Energy holds a 39.66% working interest in the Leviathan project. The Company reported third quarter net income attributable to Noble Energy of $17 million. Other interest owners include Delek Drilling LP with 45.34% and Ratio Oil Exploration LP with 15% interest.