• 4 minutes "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 7 minutes Trump will be holding back funds that were going to W.H.O. Good move
  • 11 minutes Washington doctor removed from his post, over covid
  • 15 minutes Which producers will shut in first?
  • 2 hours Why Trump Is Right to Re-Open the Economy
  • 2 hours Charts of COVID-19 Fatality Rate by Age and Sex
  • 2 hours A small trial finds that hydroxychloroquine is not effective for treating coronavirus
  • 5 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 3 hours 80's GOM Oil Fam: Mid-80's Oil Glut Part Deux?
  • 9 hours Wouldn't fall in demand balance it out?
  • 5 hours Its going to be an oil bloodbath
  • 20 hours Death Match: Climate Change vs. Coronavirus
  • 18 hours Free market or Freeloading off the work of others?
  • 23 hours Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 2 hours CCP holding back virus data . . . . . . Spanish Flu 1918 MUTATED, Came in 3 waves, Lasted 14 months and killed upward 5% World population
  • 18 hours Trump will meet with executives in the energy industry to discuss the impact of COVID-19
Jen Alic

Jen Alic

 

More Info

Premium Content

Noble Energy Riding High on Levant Largesse

The way things are going, when you think about the Levant Basin these days, you think about Houston-based Noble Energy.

The company has made yet another discovery offshore Israel near its Tamar field holdings, where production began in late March, setting the company on course for another stellar year.

Last week, Noble announced a new discovery in the Mediterranean Sea, just 20 miles northeast of its Tamar field in its Karish well after drilling to a total depth of 15,783 feet. The well encountered 184 feet of net natural gas pay, and Noble thinks it potentially holds up to 2 trillion cubic feet of natural gas.

Related article: Playing with Oil and Fire

That brings its estimated combined resources in the Levant Basin—including the Tamar and Leviathan fields—up to 38 trillion cubic feet of natural gas.

Noble is definitely on a role in the Levant Basin, and this latest discovery is its 7th so far in the eastern Mediterranean.

Noble is the operator of the Karish well license area, with a 47% stake. Avner Oil and Delek Drilling also have stakes in the license. 

Where will all that gas go, especially now that Tamar has begun producing? Tamar gas will likely be used for the domestic Israeli market, while Leviathan and other discoveries will eventually head to international markets, once Israel maps out its export plan.

Israel hopes to become a gas exporter by the end of this decade, but officials are still debating how this export map should look. Specifically, they are considering a proposal that offers up 53% of Israel’s gas for export, but only after the domestic market has secured a 25-year supply. Companies like Noble, though, are growing impatience with Israel’s indecision, so the pressure in on.

Related article: Time to Hop on the Natural Gas Train

On a geopolitical level, all this Israeli gas could remap Middle East politics, either for better or worse. Who Israel sells its gas too, especially among some of its gas-starved neighbors, will be a significant foreign policy move.

But there is another issue rankling Noble amid all of its amazing discoveries: Already in 2010 when the discoveries were made, Israel reset its tax and royalty rates. Then in mid-April, there were hints of more of this to come now that Tamar has begun producing. Israel’s new Finance Minister Yair Lapid said that the government was considering another new tax structure through the creation of a public panel on the issue. Noble was less than pleased.

In the meantime, though, it’s mostly good news for Noble since it made that first major discovery in Cyprus in 2011—which really got our attention—in Block 12, which holds an estimated 8 trillion cubic feet of gas. This was followed by Leviathan, which should start producing before the end of this decade, and Tamar, which is already on line.

Last week, Noble hit another 52-week high, and the first quarter of this year saw dividends increase 12%.

By. Jen Alic of Oilprice.com


Download The Free Oilprice App Today

Back to homepage






Leave a comment
  • Philip Andrews on May 31 2013 said:
    And we recently heard that Russia was selling Yahonts anti-ship missiles to Syria.

    For use by Hezbollah?

    Against Israeli shipping?

    Perhaps incl. gas shipping?

    Is Russia perhaps trying to undermine the competitiveness of Levant (Israeli) export gas by making the insurance permiums on gas transportation by sea excesasively high?

    Israel has to get the gas past Hezbollah first, then through the East Med where Turkey, Greece and Cyprus are having evolving conflicts about undersea energy exploration.

    Not the best place from and through which to export gas reliably and safely...

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News