Jordan signs $10 billion Israeli Leviathan gas deal

 Leviathan GAS FIELD

Noble Energy and the Leviathan partners have signed a deal for the sale of natural gas to Jordan. Gross contract revenues are estimated to be approximately $10 billion. Actual revenue will be affected by various factors, including the volume of gas NEPCO actually buys and Brent prices during the period of the contract.

This deal is for one tenth of the gas in the Leviathan field.

Under terms of the deal the marketing firm owned by the Leviathan partners, NBL Jordan Marketing, will provide Jordan’s National Electric Power Company (NEPCO) with a gross quantity of approximately 1.6 trillion cubic feet of natural gas, or 300 million cubic feet per day (and up to 350) An incremental 45 (and up to 50) billion cubic meters (BCM)-  of natural gas over 15-year term.

Natural gas supplied under this agreement will include industry-typical take-or-pay commitments, with pricing linked to Brent oil and a firm floor price.

This deal follows a previously-announced agreement with the Jordan Bromine Company and the Arab Potash Company, which will establish first gas exports to Jordan from the Tamar field in late 2016.

The Company expects to complete construction and field development to deliver first gas from Leviathan in as little as three years following sanction.

The Leviathan partners are Noble Energy Inc. (39.66%), Delek Group Ltd.  units Avner Oil and Gas LP ,  Delek Drilling LP  (22.67% each) and Ratio Oil Exploration (1992) (15%).Noble Energy Senior Vice President Eastern Mediterranean J. Keith Elliott said, “We look forward to supplying natural gas resources for energy and economic development to the people of Jordan. This first export GSPA for Leviathan further underpins the volumes supporting project sanction. Including Israel sales contracts, this brings total contracted volumes to between 400 MMcf/d and 450 MMcf/d. The approved Plan of Development incorporates an expandable platform, which will enable us to accelerate Leviathan first gas while maintaining the ability to increase production capacity to meet growing future demand. While continuing to advance negotiations with additional Israeli industrial and power companies and other regional customers, we are also progressing the other work streams necessary for a Final Investment Decision as early as the end of 2016.”

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