Noble Energy Inc. (NYSE: NBL) has executed on May 10, along with the Government of the Republic of Equatorial Guinea and necessary third-parties, a heads of agreement establishing the framework for development of natural gas from the Alen field located offshore Equatorial Guinea.

The agreement outlines the high-level commercial terms for Alen natural gas to be processed through Alba Plant LLC's Liquefied Petroleum Gas plant and EGLNG's LNG facility, both located in Punta Europa. The structure contemplated would result in the Alen field partners and the EG LNG owners accessing global LNG markets. Sanction of the project is contingent upon final commercial agreements being executed.

“This project will transform the Alen platform into an offshore hub for potential development of additional gas fields nearby. First production is anticipated early in the next decade,” Gary W. Willingham, Noble Energy’s executive vice president of operations, said.

Existing production and processing facilities in place at the Alen platform and in Punta Europa require only minor modifications to produce and process the Alen gas. The agreement contemplates construction of a 65 km (40 miles) pipeline to transport gas from the Alen platform to the facilities in Punta Europa. The pipeline is being designed with capacity to handle production from multiple fields.

The Alen field, located in Blocks O and I, offshore Equatorial Guinea, has been producing natural gas and condensate since field startup in 2013. Natural gas produced has been reinjected into the reservoir to enhance liquids recovery.

The company estimates an incremental 600 billion cubic feet of gross natural gas equivalent resources from the Alen field are recoverable as a result of the project. Noble Energy operates the Alen field with a 45% working interest and holds a 28% non-operated working interest in the Alba Plant.

Offshore