Noble Energy Group Reaches Potential $9.5 Billion Gas Deal In Israel

Noble Energy Inc. (NBL) and its partners signed a letter of intent to sell natural gas from the Tamar field, off the coast of Israel, to its state-owned electric company over a 15-year period. The deal potentially could produce $9.5 billion in revenue for the consortium.

Israel Electric Corp. plans to purchase at least 95 billion cubic feet of natural gas a year, with potential to buy significantly more during the first 15 years after the field enters production. Noble estimates the deal could produce annual revenue of $400 million to $750 million.

The oil-and-gas producer operates the Tamar field, and has a 36% working interest, the biggest stake. Partners include Isramco Negev 2 LP (ISRA.L.TV), with a 29% stake, and Delek Drilling LP (DEDR.L.TV) and Avner Oil Exploration LP (AVOGF, AVNR.L.TV) at 16% each.

Noble Chairman and Chief Executive Charles D. Davidson said, "The progress on both the development and marketing of Tamar continues to move us along towards first production in 2012, consistent with our original projections."

The company and its partners now have signed letters of intent for natural gas sales with estimated total revenue of $10.5 billion. Noble has estimated Tamar's total gross mean resources at 6.3 trillion cubic feet of gas.

Its shares closed in Thursday's shortened session at $72.83 and didn't trade premarket. Markets were closed Friday for the Christmas holiday.

 
   -By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail];