Tuesday, July 5, 2016

Delek Group to drill Tamar-8 well offshore Israel - OIL & GAS JOURNAL

ByTayvis Dunnahoe
OGJ Exploration Editor

Delek Drilling LP and operator Noble Energy Mediterranean Ltd. have announced that the Tamar-8 development well will spud in this year’s fourth quarter with 4 months planned for drilling, completion, and tie back. The well is 100 km west of Haifa offshore Israel in 1,670 m of water. Tamar-8 will target Miocene Tamar sands and is planned for a total depth of 5,050 m.

The partnership looks to increase redundancy in the existing Tamar productions system, and Tamar-8 will serve as part of its Tamar expansion project. The partnership also is planning on development of Tamar SW field.

Israel’s Petroleum Commissioner of the Ministry of National Infrastructures, Energy and Water Resources (Ministry of Energy) approved the current development plan (OGJ Online, June 2, 2016).

The well cost is an estimated $265 million, which includes $160 million for completion, and $105 million for construction of infrastructure for the Tamar project (tie back and subsea system). The partners have already invested $37 million for infrastructure development in Tamar SW, Delek said. Total net expense for the well will be $228 million.

Noble signed an agreement to divest 3% of its working interest in Tamar field to the Harel Group, a leading insurance provider and pension manager in Israel. The transaction value of $369 million is based on gross pretax Tamar valuation of $12 billion, Noble said. The transaction is expected to close in the third quarter. Harel partnered with private equity firm Israel Infrastructure Fund (IIF). The partners have an option to purchase an additional 1% working interest from Noble before closing.

Prior to the working interest sale, Noble operated Tamar field with 36% working interest. The company is carrying out an 11% sell down of its interest in Tamar field and anticipates the sale of the remaining 7-8% working interest with the next 36 months, at which point the operator will retain a 25% working interest and operatorship in Tamar field.

Tamar has recoverable resources of 10 tcf of natural gas. In 2015, the field sold 252 MMcfd of natural gas, generating $318 million in net pretax income for the operator.

Additional partners on the Tamar-8 include Delek Drilling 15.625%, Avner Oil & Gas Exploration LP 15.625%, Isramco Negev 2 LP 28.75%, and Dor Gas Exploration LP 4%.