November 6, 2019
Noble Energy, Inc. (NYSE: NBL) (“Noble Energy” or the “Company”) announced today that the Company and its partners have closed on the acquisition of a 39 percent equity interest in the Eastern Mediterranean Gas Company S.A.E. (“EMG”), which owns the EMG Pipeline. The pipeline will be used to transport natural gas volumes into Egypt under the Company’s gas supply agreements with Dolphinus Holdings (“Dolphinus”). Noble Energy’s net acquisition investment in the EMG Pipeline totaled $185 million, and the Company’s effective interest in the pipeline is 10 percent.
J. Keith Elliott, Noble Energy’s Senior Vice President, Offshore, stated, “The closing of the EMG acquisition will support delivery of natural gas from the Tamar and Leviathan fields into Egypt, and represents a major milestone toward Egypt’s goal of becoming a regional energy hub. This acquisition, combined with our recently announced Dolphinus gas sales contracts offtake increases, provides further confidence in both the long-term export market and growing cash flows from our Eastern Mediterranean assets.”
The EMG Pipeline is a 90-kilometer pipeline, located primarily offshore, that serves as a connection between the Israeli pipeline network and the Egyptian pipeline network. The acquisition of interest in the pipeline was contingent upon technical third-party recertification, including completion of successful intelligent pigging and pressure testing of the pipeline, which were accomplished over the past months, as well as finalization of several commercial agreements. Noble Energy intends to use the pipeline to accommodate the Company’s existing natural gas contracts from Leviathan and Tamar into Egypt, commencing January 2020 and increasing to 650 MMcf/d, gross, by mid-2022.
Noble Energy (NBL) is an independent oil and natural gas exploration and production company committed to meeting the world’s growing energy needs and delivering leading returns to shareholders. The Company operates a high-quality portfolio of assets onshore in the United States and offshore in the Eastern Mediterranean and off the west coast of Africa. Founded more than 85 years ago, Noble Energy is guided by its values, its commitment to safety, and respect for stakeholders, communities and the environment. For more information on how the Company fulfills its purpose: Energizing the World, Bettering People’s Lives®, visit https://www.nblenergy.com.
SOURCE
