Noble Energy Inc. (NYSE: NBL) is expanding its natural gas exploration operations in Israel. Sources inform ''Globes'' that it has hired another drilling platform, the Pride North America, for the Tamar reservoir, and to drill exploration wells in the Leviathan structure. The platform is currently in Egyptian waters, and Noble Energy plans to move it north early next year.
Two months ago, "Globes" reported that Noble Energy planned to bring a second drilling platform to Israel, to join the Sedco Express, which is due to arrive in Israel from Africa, in October.
The Pride North America platform is designed to drill natural gas wells, but can also drill for oil. Noble Energy needs a deep water drilling platform for the Leviathan structure, because the oil reservoir could be at a depth of 8,000 meters. The Pride North America platform will cost $1.5 million a day, and will be reportedly be hired for three months, with an option to extend.
Noble Energy published its financial report for the second quarter on Thursday. In the subsequent earnings call, CEO Charles Davidson told analysts that the company would meet the timetable to begin gas deliveries from Tamar by the end of 2012. This will be possible because of the company's contingency plan to use build a pipeline from the Tamar well to the existing pipeline at the Yam Tethys reservoir offshore from Ashkelon.
Noble Energy Inc. (NYSE NBL) owns 36% of Tamar, Delek Group Ltd. (TASE: DLEKG) subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 15.625%, Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) owns 28.7%, and Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) unit Dor Alon Energy Exploration Ltd. owns 4%. Noble Energy and Delek Group jointly own Yam Tethys, and both companies are partners in the Leviathan structure, together with Ratio Oil Exploration (1992) LP (TASE:RATI.L).
Published by Globes [online], Israel business news - www.globes-online.com - on August 1, 2010
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