Noble Energy has sanctioned the US$3.75 billion phase one of the giant Leviathan project, as partners in the Israeli gas field have approved the final investment decision.
Leviathan sits in1600m water depth, 130km offshore Israel, and is estimated to contain 22 Tcf of natural gas. The giant field was discovered in 2010 by Houston-based Noble Energy.
The field's initial development will include four subsea wells, each capable of flowing more than 300 MMcf/d of natural gas. Noble says that initial Leviathan proved reserve bookings associated with this investment are 9.4 Tcf gross, or about 550 MMboe net to Noble, representing a 35%+ increase in the firm's reserves.
This year, Noble and the Leviathan partnership plan to drill one to two Leviathan development wells. Completion activity for all four producer wells, including two previously drilled, is expected in 2018. Noble expects to complete project installation and initiate commissioning in Q4 2019, with delivery of first gas targeted for the end of 2019.
Production will be exported via two 73mi flowlines to a fixed ca. 22,000-ton platform, with full processing capabilities, about 6mi offshore. From there, gas will be exported to the Israel Natural Gas Lines onshore grid in the northern part of Israel and then on to regional markets via onshore export pipelines. The approved development plan allows for future expansion from the initial 1.2 Bcf/d capacity to 2.1 Bcf/d.
Noble estimates gross capital for phase one of the Leviathan development to be ca. $3.75 billion ($1.5 billion net to Noble Energy).
Leviathan is Noble's third major natural gas development offshore Israel, following Tamar and Mari-B, noted David L. Stover, Noble Energy chairman, president and CEO.
Partner Delek Group's CEO Asaf Bartfeld said: "The final investment decision in Leviathan, following the natural gas outline plan, is... a major leap for the Israeli energy industry and economy. Developing Leviathan and pursuing more export agreements, coupled with supply to the domestic market, will ensure energy security for Israel and will add to Delek Group's stability," says Asaf Bartfeld, president and CEO of Delek Group.
Noble says it is currently finalizing major project contracts for the development and long lead materials procurement has started.
Noble Energy operates Leviathan with a 39.66% interest. The partners are Delek Drilling (22.67%), Avner Oil Exploration (22.67%), and Ratio Oil Exploration (15%).
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