Noble Energy, Inc. yesterday announced that it has supplemented its Delaware Basin takeaway position with an additional firm sales agreement which will result in the company’s crude oil reaching the Gulf Coast. The five-year agreement provides for firm gross sales of at least 10 000 bpd beginning in July 2018, increasing to 20 000 bpd beginning in October 2018 and for the remainder of the agreement. Crude oil sold under the agreement will initially utilise the buyer's existing firm transport capacity to Corpus Christi. Shortly following commencement of full service of the EPIC Crude Pipeline, it is anticipated that crude oil sales under the agreement will be transported by way of the company’s firm transportation capacity. Noble Energy has secured 100 000 bpd of firm transportation capacity on the EPIC Crude Pipeline for a 10-year period following project start-up, which is expected to be in the second half of 2019. Prior to the transaction announced yesterday, the company previously had executed firm sales agreements to the Gulf Coast or Cushing markets for its Delaware crude oil covering gross oil volumes of 10 000 bpd for the second half of 2018 and 5000 bpd for 2019.
The company also provided an update of its basis hedge position for the remainder of 2018 and 2019. For the second half of 2018, Noble Energy has secured a total of 20 000 bpd of Midland-Cushing basis swaps at a price differential of US$2.30 per barrel. For 2019, the company has hedged 27 000 bpd of Midland-Cushing basis at a price differential of US$3.23/bbl.
Noble Energy is an independent oil and natural gas exploration and production company with a diversified high-quality portfolio of both US unconventional and global offshore conventional assets. Founded more than 85 years ago, the company is committed to safely and responsibly delivering its purpose: Energizing the World, Bettering People's Lives®.
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