Dalia Tzafit Power station Israel via Offshore Technologies Newsletter

Dalia Tzafit Power station Israel via Offshore Technologies Newsletter

Tamar Field, Israel[Image]Email Article [Image]Print [Image]Link To Us [Image]Related Projects[Image]Key DataOutputNatural GasDiscoveredJanuary 2009Estimated reserves6.3 trillion cubic feet of natural gasProduction begins2012OperatorNoble EnergyContractorsAker SolutionsFull specifications The Tamar field is the latest natural gas discovery by Noble Energy. The discovery made in January 2009 is the largest by the company to date. Noble Energy owns 36% in Tamar and is the operator of the field. Isramco Negev 2 owns 28.75% in the field, while two of Delek Group's subsidiaries Delek Drilling and Avner Oil Exploration own 15.625% each. The remaining 4% stake is held by Dor Gas Exploration.The field development is in progress, with two appraisal wells having been drilled. According to current estimates, the field has reserves of about 6.3 trillion cubic feet (tcf) of gas. First production from Tamar is expected in 2012. The project sanctioning is expected in 2010.[Image][Image]Tamar locationThe Tamar field is located in the Levantine basin of the Eastern Mediterranean Sea. The prospect falls under the Matan licence, which Noble Energy has been operating since July 2006.The Matan deepwater block covers an area of 318km2 while the Tamar structure is spread over 250km2. The first appraisal well that discovered natural gas reservoirs in the field is situated 90km west of the northern port of Haifa on the Israeli coast.Natural gas discovery"Noble Energy owns 36% in Tamar and is the operator of the field."The presence of natural gas in the Tamar field was discovered in January 2009. The discovery was made by the first appraisal well Tamar-1 drilled in the field.A total of three reservoirs were found by the appraisal well. Tamar-1 is located at a water depth of about 5,500ft. The well was drilled to a total depth of 16,076ft. The structure that the well tested is a lower-Miocene prospect.A net pay exceeding 460ft was identified in the three reservoirs by the formation logs.ReservesPre-drill estimates at Tamar were 3.1tcf of natural gas. Following flow testing of the first appraisal well in February 2009, the estimates were raised to 5tcf, then subsequently increased to 6.3tcf following the drilling of second appraisal well Tamar-2.Further assessment of the discovery is being carried out by an independent consulting firm to confirm the resources at the field.Tamar field developmentThe Tamar field is being explored because the 3D seismic data over the Levantine basin collected from Spectrum indicated potential for natural gas resources in the Tamar and other fields in the basin. Development of he Tamar field started in 2003 when the first appraisal well was proposed to be drilled. Named Tamar-1, the well targeted sands lying at 2,500m subsea. The cost of drilling the appraisal well was initially estimated at $40m but has escalated to more than $145m."Estimates increased to 6.3tcf of natural gas following the drilling of second appraisal well Tamar-2."Tamar-1 discovered three high potential gas reservoirs at the field. During flow testing in the month that followed, Tamar-1 yielded a flow rate of 30 million cubic feet of natural gas per day (mmcf per day).The well is likely to achieve a production rate of more than 150mmcf per day. The testing was conducted to a limited depth of 59ft.In July 2009, Noble Energy completed drilling of the second appraisal well Tamar-2. The well is situated about 3.5 miles northeast of Tamar-1. Tamar-2 is at 5,530ft of water depth and is drilled to a total depth of 16,880ft.Noble Energy collected additional 3D seismic data over 1,600 square miles of the Tamar region in the second half of 2009, after the drilling of Tamar-2 was complete. Based on the leads obtained from the seismic programme, Noble Energy is planning to further explore the Tamar field before it starts development drilling in 2010.The drilling of Tamar-2 confirmed high quality gas at the reservoirs and surged the total reserves at the field from 5tcf to 6.3tcf of natural gas.Atwood Hunter rigThe appraisal wells at Tamar were drilled by using the drilling rig Atwood Hunter. It is a semi-submersible rig owned by Atwood Oceanics. The rig can drill to a maximum water depth of 5,000ft.Atwood Hunter is also being employed to conduct drilling at Dalit, another Israeli field operated by Noble Energy.Atwood Hunter was constructed in 1981 and refurbished in 1997. It was further upgraded in 2002 and can now drill to depths up to 28,000ft.Tamar productionProduction testing at Tamar field is yet to be carried out following the successful completion of drilling the second appraisal well. The operator Noble Energy expects to commence production in 2012."The well is likely to achieve a production rate of over 150mmcf a day."Noble Energy made two agreements in December 2009 to supply the produced natural gas at Tamar. The agreements will generate an estimated revenue of $10.5bn over years to come.The first letter of intent (LoI) was signed on 15 December 2009 with Dalia Power Energies, a private electricity company. As per the LoI, Dalia will receive natural gas from Tamar for 17 years. Dalia will use the natural gas to produce electricity at a gas-fired power plant to be set up at Tzafit in 2013.The agreement is estimated to generate revenue of $1bn for a supply of 200 billion cubic feet (bcf) of gas. The LoI also has provision to increase the supply up to 700BCF.The second LoI to sell Tamar natural gas was signed on 28 December 2009 with Israel Electric Corporation (IEC). The 15-year agreement allows IEC to buy 95bcf of gas a year, generating estimated revenue of $9.5bn for the owners of Tamar field.

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