Noble Energy launches first natural offshore production in Israel

Petroleum News

Natural gas production has begun from the Mari-B field in the Mediterranean Sea offshore Israel, project operator Noble Energy said, noting that Mari-B is the first offshore gas production facility in Israel.

“The startup ... is an important milestone for the company,” Charles Davidson, Noble’s chief executive officer, said Dec. 24. “This project will contribute consistent and substantial production volumes, cash flow and income for years to come.”

Houston-based Noble and its partners have an 11-year contract to supply 636 billion cubic feet of natural gas to Israel Electric for the utility’s electrical power plants.

Noble’s Mari-B partners include Avner Oil Exploration Limited Partnership (23 percent), Delek Drilling Limited Partnership (25.5 percent) and Delek Investments and Properties (4.441 percent). Noble holds a 47.059 percent stake in the field, estimated to contain more than 1 trillion cubic feet of gas reserves.

Noble said that as it expects gross production at Mari-B to reach 100 million cubic feet per day in 2004, about 40 million cubic feet per day net to Noble, as Israel Electric fires up boilers for a new gas turbine. Ultimate gross production under the contract is planned to reach 170 million cubic feet per day. Noble said it expects to market additional gas as Israel develops its infrastructure.

Noble also has an undeveloped offshore discovery, Noa, which is estimated to contain more than 200 billion cubic feet of gas reserves. Noa eventually will be tied back to the Mari-B platform, Noble said.