Noble Energy has signed a Letter of Intent (LOI) to sell natural gas from the Tamar field, offshore Israel, to Dalia Power Energies (Dalia). Dalia, a private electricity company, has a license to build a natural-gas fired power plant in Israel with operations planned to commence in 2013.

According to terms of the LOI, Noble Energy and its partners will deliver natural gas volumes of approximately 200 billion cubic feet (Bcf) to Dalia under a 17-year supply agreement. Total revenues for these volumes are estimated to be at least $1 billion. Sales volumes under the LOI may be increased to 700 Bcf depending upon the final size of the power plant and extent of operations.

Charles D. Davidson, Noble Energy's Chairman and CEO, said, "This agreement demonstrates the growing demand for natural gas in Israel. We and our partners are continuing discussions with a number of additional customers regarding the supply of natural gas from Tamar, with plans for first sales in 2012."

Noble Energy operates Tamar, offshore Israel in the Matan license, with a 36 percent working interest. Other interest owners are Isramco Negev 2 with 28.75 percent, Delek Drilling with 15.625 percent, Avner Oil Exploration with 15.625 percent and Dor Gas Exploration with the remaining four percent.

Tags: Noble Energy