Noble Energy Inc. (NYSE: NBL) Israel Country Manager Bini Zomer today said that his company believed that it could develop the Leviathan natural gas reservoir, if enough contracts are signed, despite the steep drop in oil and gas prices that have led to the company cutting its investments.
"There is no doubt that the global oil and gas industry is facing many challenges. Despite those challenges, Noble believes that the Leviathan project can move forward based on domestic and export opportunities and because of the positive climate created by the Natural Gas Framework," Zomer said.
He added, "With the continued cooperation and mutual commitment of the regulators, the State of Israel and the lease holders, a Final Investment Decision (FID) can be achieved by the end of 2016 with the flow of gas to domestic and regional markets within 3-4 years from FID and as early as the end of 2019 in accordance to what was articulated in the Framework and the Leviathan leases."
Zomer issued the statement "following reports in recent days concerning difficulties facing the global oil and gas industry in the context of developing Leviathan."
The Leviathan partners today announced a first $1.3 billion contract with Edeltech Group. Noble Energy last week announced that it was cutting its investments by 50% this year, and its dividend by 44%, following plummeting oil and gas prices, thereby giving rise to doubts about the company's ability to develop the Leviathan reservoir.
Published by Globes [online], Israel business news - www.globes-online.com - on January 31, 2016
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