Delek Drilling and Avner Oil, part of the Leviathan partnership with Noble Energy, has approved the development plan for the mega-discovery, offshore Israel, the two announced today 12 December. The decision paves the way to Leviathan's final investment decision (FID), which Houston-based operator Noble Energy previously said it expected to make by year's end or early 2017.
Delek said that it expects first gas from the field by the end of 2019.
 |
|
Image from Delek. |
Noble Energy received approval from Israel's government to move forward with Leviathan's development back in June.
So far, the Leviathan project has been granted approval for a budget of US$119 million for 2016, up until the end of January 2017 for development; in addition to receiving front-end engineering design (FEED) services for the production platform.
“Having assessed the development plan, the work plan and the proposed budget for the development of stage 1A of the development plan, with a capacity of 12 Bcm per annum (1.2 Bcf/d), at a scope of $3.5-4 billion (for 100% of the rights in the Leviathan Field), the board of directors of the general partner has decided to approve the said development plan, work plan and budget, and has authorized the partnerships' managements to approve the FID for the development of the Leviathan Field as soon as possible, in accordance with the provisions of the JOA (joint operations agreement), in order to facilitate the start of natural gas production from the Leviathan Field, in accordance with the timetables as published, by the end of 2019,” Delek said in a statement.
The giant Leviathan field is some 130km off the coast of Israel at 1600m water depth, in the Mediterranean Sea. It is considered to be one of the largest discoveries it the past decade with an estimated 22 Tcf of recoverable natural gas resources. Its development plan 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.
The Leviathan partners include Noble Energy (operator, 39.66%). Avner Oil (22.67%), Delek Drilling (22.67%), and Ration Oil Exploration (15%).
Read more:
Leviathan partners secure funding
Subscribe
