Partners in the Leviathan field offshore Israel have secured US$1.5-1.75 billion funding towards the field development project.
Delek Drilling and Avner Oil Exploration secured the cash from HSBC Bank and J.P. Morgan. It will be released in tranches, based on certain conditions.
Development at Leviathan is expected to start in 2017, with a final investment decision on track for year-end 2016 or early 2017.
Leviathan was discovered in the Levantine Basin in the Mediterranean Sea, about 130km off the coast of Israel at 1600m water depth. It is considered to be one of the biggest discoveries it the past decade with an estimated 22 Tcf of recoverable natural gas resources.
The Leviathan plan of development (POD) consists of a subsea system that connects production wells to a fixed platform located offshore with tie-in onshore in the northern part of Israel. The fixed platform's initial capacity is anticipated to start at 1.2 Bcf/d of natural gas and is expandable to 2.1 Bcf/d.
Operator Noble Energy anticipates sales volumes in 2020 to reach a minimum of 600 MMcf/d, and up to 1 Bcf/d gross.
Asaf Bartfeld, President & CEO of Delek Group: "Closing of the financing agreement brings Delek Group and our Gas Partnerships closer to taking the final investment decision (FID) to develop the Leviathan field. Completion of the long regulatory process allows us to concentrate on implementing the Natural Gas Outline Plan, to develop the Leviathan field, to supply the requirements of the Israeli energy market, and to extend export activities. We are committed to delivering natural gas from Leviathan to the Israeli market and to comply with the timetable as agreed between the project partners.
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