Noble Energy Narrowly Beats Q2 Output Target
US producer Noble Energy produced 425,000 barrels of oil equivalent/day in the second quarter, 3.6% above the midpoint of its guidance range of 405,000-415,000 boe/d.
According to a company filing, the performance was driven largely by better-than-anticipated well performance from the US Eagle Ford shale, and sustained coal displacement in Israel. "Israel gas sales volumes were higher than expected due to continued displacement of coal by natural gas in electricity generation and seasonally warmer weather than normal," it said in a statement.
Also, Noble Energy announced the sale of a 3% working interest in the Tamar field to a partnership comprised of the Harel Group and the Israel Infrastructure Fund for pre-tax proceeds of $369mn on July 5.
"The operational update and sell-down of a stake in Tamar was evidence of increasingly advantaged operational execution amongst the large-cap E&P producers," Deutsche Bank analysts said.
Under the terms of the agreement, the partnership has the option to purchase – before the 3Q anticipated closing deadline – an additional 1% working interest from Noble at the same valuation.
Noble's partner Delek, on the other hand, is not talking about a sale now, although it will eventually have to divest all its holding in the target, according to a report in Globes that said the government was reluctant to press Noble to divest all its Tamar holding since it was not practical to exclude a partner that was the main entity carrying out drilling, exploration and production.
Tamar oil rig (Credit: Albatros)
As part of the regulatory framework, Noble Energy will be required to sell a further 7-8% working interest in Tamar – anticipated over the next 36 months.
In 2015 Noble posted a loss of $2.44bn. Last year it sold half its holdings Aphrodite gas field off shore Cyprus for $165mn to BG (now owned by Anglo-Dutch major Shell) and its 47% holdings in the Karish and Tanin gas fields off shore Israel for $70mn to Delek Group.
Murat Basboga