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Noble drops Atwood rig from Leviathan project

Written by  OE Staff Thursday, 20 July 2017 03:13

Partners on the Leviathan gas project offshore Israel have opted to end a rig contract with Atwood Oceanics in favor of a cheaper deal. 

Operator Noble Energy had been due to drill the Leviathan 5 and 7 appraisal and production wells using the Atwood Advantage drillship, operated by Atwood. 

But, following a tender, and "significantly lower" rig rates offered elsewhere, the firm says it will now look to drill Leviathan 7 with another rig. 

Delek says the Leviathan 5 well is expected to be completed soon, after reaching the final depth planned and verification of the existence of natural gas in three layers of the Leviathan reservoir (Sands A, B and C).

As well as drilling the lower part of Leviathan 7 well, the new rig will also drill the lower part of the and Leviathan 3, as from Q1 2018, and will go on to complete the production drilling in the Leviathan project.

To date, the cost of the Leviathan 5 well and drilling the upper part of Leviathan 7 well, is expected to amount to US$ 106 million (100%), out of the total budget for these wells, as approved in the past by the Leviathan partners, of $148 million (100%).

Stage 1A development of the Leviathan development is on track for first gas by the end of 2019, says Delek.

Noble Energy is operator with 39.66% interest, with partners Delek Drilling (45.34%) and Ratio Oil Exploration (15%). 

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