The Mediterranean Sea is seeing more oil and gas exploration and development as various energy companies have recently announced discoveries here. The search for oil and gas here is also complicated by regional tensions between the countries in the area.
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Israel
Noble Energy (NYSE:NBL) has been exploring in the Eastern Mediterranean for many years, and has approximately 1.6 million acres under lease to explore. The company has a 47% interest in the Mari-B field offshore Israel, which was recently producing 138 million cubic feet per day of natural gas. Noble Energy has two additional wells at this field coming on line in the third quarter of 2010, and will eventually have the infrastructure to deliver 600 million cubic feet equivalent per day.
The company also has the Tamar development and recently received approval for a development plan from the Israeli government. The company has a 36% interest at the Tamar field, and estimates gross reserves at 8.4 trillion cubic feet. Noble Energy expects first production in 2012, and phase one will have deliverability of 850 million cubic feet per day of natural gas, moving up to 1.2 billion cubic feet per day in phase two.
Noble Energy also has several other prospects in the area with the Leviathan field generally regarded as the most promising. Noble Energy has 40% of this field, which may hold up to 16 trillion cubic feet of natural gas, and up to 4.2 billion barrels of oil in two other formations. All these estimates are preliminary and Noble Energy plans to spud a well at Leviathan in the fourth quarter of 2010 to start the confirmation process.
Geopolitical tensions are also present in this area. Just after the extent of the Leviathan discovery was disclosed, Lebanon disputed the Israeli claim to the offshore area where it was discovered. Lebanon plans to hold an auction soon on its offshore blocks.
Egypt
Apache Corp (NYSE:APA) is the largest operator in Egypt, but is active only in the onshore area of the country. Eni (NYSE:E), an Italian oil and gas company is active in the offshore area off Egypt in the Mediterranean Sea. The company recently started up production of natural gas in the Tuna field, part of the Temsah Concession. This new field will add 8,500 barrels of oil equivalent (BOE) to the company's production. Eni averaged production of 230,000 BOE per day in 2009 from all its Egyptian properties.
Tunisia
There has also been a recent discovery in the Mediterranean Sea offshore Tunisia. Chinook Energy (CKE:TO) found 45 meters of net pay off the southern coast of Tunisia in the Jenein Centre permit area, and expects full results of the well in October 2010.
The Bottom Line
The Mediterranean Sea is a promising area for oil and gas exploration and is starting to pay off for many exploration and production companies that have invested in the area. (To learn more, check out our Oil And Gas Industry Primer.)
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