Israel approves deepwater Leviathan development

Noble Energy has received approval from Israel’s Petroleum Commissioner in the Ministry of National Infrastructure, Energy and Water Resources for the offshore Leviathan project.

Offshore staff

HOUSTON – Noble Energy has received approval from Israel’s Petroleum Commissioner in the Ministry of National Infrastructure, Energy and Water Resources for the offshore Leviathan project.

The sanctioned plan of development (POD) envisages a subsea system connecting production wells to a fixed offshore platform with a tie-in onshore in the northern part of Israel.

Initially the platform’s production capacity will likely be 1.2 bcf/d, expandable later on to 2.1 bcf/d.

Leviathan will provide a second source of supply and entry point into Israel’s domestic natural gas transport system, while also exporting gas to other countries in the region.

In addition, Noble has confirmed execution of a gas sales and purchase agreement to supply natural gas from Leviathan to IPM Beer Tuvia Ltd (IPM).

The field partners will supply up to 473 bcf to a new-build independent power station over an 18-year term, or up to 72 MMcf/d. Natural gas sales to IPM should begin at field startup.

The price for the natural gas is linked to the Public Utility Authority Index and includes a firm floor price, and should bring in total gross revenues of more than $2.5 billion. The agreement remains subject to regulatory approvals.

J. Keith Elliott, senior vice president, Eastern Mediterranean, said: “Receiving support from the government of Israel for the POD further builds upon recent regulatory momentum, including the Israeli government’s approval of the revised stability language in the natural gas regulatory framework as well as the National Planning Committee’s approval of the offshore location for the Leviathan platform and pipeline connection onshore…

“We have now contracted volumes from Leviathan to the Israel market…of approximately 100 MMcf/d, with substantial volumes yet to contract in Israel and the region. Strong momentum on the regulatory and marketing fronts represents major steps in advancing the Leviathan project towards final investment decision.”

Noble operates Leviathan with a 39.66% interest. Its partners areDelek Drilling (22.67%), Avner Oil Exploration (22.67%), and Ratio Oil Exploration (1992) with the remaining 15%.

The field has estimated resources of 22 tcf.

06/02/2016

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