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OIL AND GAS
Noble says gas sales from Israeli assets soaring
by Daniel J. Graeber
Houston (UPI) Oct 28, 2014


Egypt to fade into background for BG Group
London (UPI) Oct 28, 2014 - British energy company BG Group said Tuesday it expected gas operations in Egypt, which account for 10 percent of its production, to continue to decline.

BG Group said its activities in Egypt accounted for 10 percent of its production and around 3 percent of its earnings during the third quarter. Output from exploration and production operations in the country was 55,000 barrels of oil equivalent per day, 51 percent less than the same period for 2013.

The company in its third quarter financial statement said no liquefied natural gas left Egypt from its operations.

"The group expects the earnings contribution from Egypt to continue to reduce over time," it said.

Total exploration and production output was 569,000 boe per day, down 2 percent from third quarter 2013. An increase in its operations in Latin America and the United Kingdom were more than offset by declines in Egypt, the company said.

BG Group this month appointed Helge Lund, the former head of Norwegian energy company Statoil, as new chief executive officer.

"We believe we have the best person in the international oil and gas market to lead BG Group in its next phase of growth," interim Executive Chairman Andrew Gould said.

BG Group shares were off more than 2 percent in early Tuesday trading.

Energy explorer Noble Energy said Tuesday production during the third quarter soared because of advancements off the coast of Israel.

Noble, a partner in the development of the Tamar and Leviathan gas basins, said gas sales volumes from its Israeli assets were up 21 percent from the second quarter and up 3 percent year-on-year.

Tamar managing partners Noble and Israel's Delek Group estimate the field holds as much as 10 trillion cubic feet of natural gas. Last week, they said they were negotiating the sale of at least 175 billion cubic feet of natural gas per year over the next three years with Egyptian buyer Dolphinus Holdings Ltd.

During the third quarter, the company said the "debottlenecking" of Tamar facilities led to a peak product of more than 1.1 billion cubic feet of gas output per day

Delek last week said gas sent from Tamar would be "interruptible," or designated only from excess reserves from the offshore field

"Combined for Tamar and Leviathan, Noble Energy and partners have executed letters of intent to export gross daily volumes of up to 1.7 billion cubic feet per day and total volumes of more than 8 trillion cubic feet of natural gas to regional export customers," the company stated. "Negotiations of final gas purchase and sales agreements are underway."

Noble reported net income for the third quarter of $419 million, up from $205 million during the same period last year.


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