Noble Energy Closes on Acquisition of Interest in the Eastern Mediterranean Gas (EMG) Pipeline
November 06 2019 - 4:19PM
Business Wire
Noble Energy, Inc. (NYSE: NBL) (“Noble Energy” or the
“Company”) announced today that the Company and its partners have
closed on the acquisition of a 39 percent equity interest in the
Eastern Mediterranean Gas Company S.A.E. (“EMG”), which owns the
EMG Pipeline. The pipeline will be used to transport natural
gas volumes into Egypt under the Company’s gas supply agreements
with Dolphinus Holdings (“Dolphinus”). Noble Energy’s net
acquisition investment in the EMG Pipeline totaled $185 million,
and the Company’s effective interest in the pipeline is 10
percent.
J. Keith Elliott, Noble Energy’s Senior Vice President,
Offshore, stated, “The closing of the EMG acquisition will support
delivery of natural gas from the Tamar and Leviathan fields into
Egypt, and represents a major milestone toward Egypt’s goal of
becoming a regional energy hub. This acquisition, combined with our
recently announced Dolphinus gas sales contracts offtake increases,
provides further confidence in both the long-term export market and
growing cash flows from our Eastern Mediterranean assets.”
The EMG Pipeline is a 90-kilometer pipeline, located primarily
offshore, that serves as a connection between the Israeli pipeline
network and the Egyptian pipeline network. The acquisition of
interest in the pipeline was contingent upon technical third-party
recertification, including completion of successful intelligent
pigging and pressure testing of the pipeline, which were
accomplished over the past months, as well as finalization of
several commercial agreements. Noble Energy intends to use the
pipeline to accommodate the Company’s existing natural gas
contracts from Leviathan and Tamar into Egypt, commencing January
2020 and increasing to 650 MMcf/d, gross, by mid-2022.
Noble Energy (NYSE: NBL) is an independent oil and
natural gas exploration and production company committed to meeting
the world’s growing energy needs and delivering leading returns to
shareholders. The Company operates a high-quality portfolio of
assets onshore in the United States and offshore in the Eastern
Mediterranean and off the west coast of Africa. Founded more than
85 years ago, Noble Energy is guided by its values, its commitment
to safety, and respect for stakeholders, communities and the
environment. For more information on how the Company fulfills its
purpose: Energizing the World, Bettering People’s Lives®, visit
https://www.nblenergy.com.
This news release contains certain "forward-looking statements"
within the meaning of federal securities laws. Words such as
"anticipates", "believes", "expects", "intends", "will", "should",
"may", and similar expressions may be used to identify
forward-looking statements. Forward-looking statements are not
statements of historical fact and reflect Noble Energy's current
views about future events. Such forward-looking statements may
include, but are not limited to, future financial and operating
results, and other statements that are not historical facts,
including estimates of oil and natural gas reserves and resources,
estimates of future production, assumptions regarding future oil
and natural gas pricing, planned drilling activity, future results
of operations, projected cash flow and liquidity, business strategy
and other plans and objectives for future operations. No
assurances can be given that the forward-looking statements
contained in this news release will occur as projected and actual
results may differ materially from those projected. Forward-looking
statements are based on current expectations, estimates and
assumptions that involve a number of risks and uncertainties that
could cause actual results to differ materially from those
projected. These risks and uncertainties include, without
limitation, the volatility in commodity prices for crude oil and
natural gas, the presence or recoverability of estimated reserves,
the ability to replace reserves, environmental risks, drilling and
operating risks, exploration and development risks, competition,
government regulation or other actions, the ability of management
to execute its plans to meet its goals and other risks inherent in
Noble Energy's businesses that are discussed in Noble Energy's most
recent annual reports on Form 10-K, respectively, and in other
Noble Energy reports on file with the Securities and Exchange
Commission (the "SEC"). These reports are also available from the
sources described above. Forward-looking statements are based on
the estimates and opinions of management at the time the statements
are made. Noble Energy does not assume any obligation to update any
forward-looking statements should circumstances or management’s
estimates or opinions change.
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version on businesswire.com: https://www.businesswire.com/news/home/20191106006039/en/
Investor Contacts Brad Whitmarsh
(281) 943-1670 Brad.Whitmarsh@nblenergy.com
Kim Hendrix (281) 943-2197 Kim.Hendrix@nblenergy.com
Media Contacts Trudi Boyd (281)
569-8009 media@nblenergy.com
Paula Beasley (281) 876-6133 media@nblenergy.com
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