Noble Energy, Inc. announced the signing of a gas sales agreement between NBL Eastern Mediterranean Marketing Ltd., the Arab Potash Company ("Arab Potash"), and the Jordan Bromine Company ("Jordan Bromine"), both of which are located in Amman, Jordan. Under terms of the agreement, Noble Energy will supply natural gas from the Tamar field, offshore Israel, to Arab Potash and Jordan Bromine for use in their facilities near the Dead Sea.
Natural gas sales are anticipated to commence in 2016, once minimal required pipeline infrastructure has been completed. The agreement is for an initial term of 15 years and a total gross contract quantity of approximately 66 billion cubic feet of natural gas. The price for the natural gas sold will be based on a floor price of at least $6.50 per thousand cubic feet of natural gas with upside linked to Brent crude oil prices. Gross revenues are estimated at $500 million, with actual sales dependent on final purchased quantities and oil prices at the time of sale.