US-based Noble Energy expects gross revenue of about $500 million from deal stretching over 15 years
US-based Noble Energy Inc signed a contract to supply natural gas from its offshore Israeli reservoir to Jordanian companies Arab Potash Co Plc and Jordan Bromine, Reuters reported Wednesday.
Under the terms of the deal Noble Energy will provide 1.8 billion cubic meters (66 billion cubic feet) of gas extracted from Tamar over 15 years beginning in 2016.
The expected gross revenue is to the tune of about $500 million. The deal has been the subject of competing bids by the operators of Israel’s two major offshore gas fields.
Noble has a 36% share of Tamar, and a 40% share of Leviathan, while the Israel-based Delek Group owns 31% of Tamar and 45% of Leviathan.
Gas from the Leviathan reservoir, located about 130 kilometers west of the Israeli coastal city of Haifa, is expected to begin flowing in 2016. The smaller Tamar field, east of Leviathan, began generating gas for the Israeli domestic market in March 2013.
In January, the Palestine Power Generation Company signed a $1.2 billion agreement with three Israeli and American drilling companies to buy natural gas from Israel’s recently discovered Leviathan field.
Under the agreement, the Palestinians will buy 4.75 billion cubic meters of gas for a period of 20 years to fuel a future power plant with a 200-megawatt capacity in the West Bank city of Jenin.