Noble Energy to move Sedco rig to Leviathan

After completing drilling at Tamar, Sedco will replace Pride North America, which has suffered repeated breakdowns.

Sources inform "Globes" that Noble Energy Inc. (NYSE: NBL) is set to move the Sedco Express drilling rig to the Leviathan 3 field, to continue the drilling there. Sedco Express is currently developing the Tamar gas field but it is shortly expected to be moved to Leviathan, to replace the North America rig.

As reported by "Globes" earlier this month, there is a crisis of confidence between the Leviathan partners led by Noble Energy and Pride International over repeated breakdowns by North America since drilling began at Leviathan at the start of the year. In contrast, Sedco Express, which is owned by Transocean, is appreciated for its professional achievements in successfully and fully implementing the work plan at Tamar ahead of schedule.

Sedco is about to finish drilling Tamar 6, creating a time window for it to be available to complete the verification drilling at Leviathan.

The Leviathan 3 drilling is designed to precisely verify the survey findings that there are 16 trilling cubic feet of natural gas in the Leviathan field with a possible upside of 21 trillion cubic feet. The Leviathan 1 drilling performed by Sedco was stopped before it reached the oil strata at a depth of 5,800 and 7,200 meters.

That drilling was meant to be renewed by Pride North America after Leviathan 3 was completed but it is now not clear which rig will continue the drilling.

Noble owns 39.66% of Leviathan, Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 22.67% and Ratio Oil Exploration (1992) LP (TASE:RATI.L) owns 15%.

Published by Globes, Israel business news - www.globes-online.com - on September 27, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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