Wood Group Mustang has been chosen by the Leviathan partners to provide the front-end engineering and design (FEED) work for the Leviathan project’s production platform in a US$120 million deal.
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Image from Wood Group Mustang Twitter. |
Noble Energy told OE: "The selection by Noble Energy and partners to engage Wood Group Mustang to perform the front-end engineering and design (FEED) and detailed engineering work for the Leviathan production platform builds on recent momentum to advance the project towards a final investment decision (FID) and achieve our mutual goal with the Israeli government to deliver natural gas from Leviathan as quickly as possible."
“Demonstrating strong support for advancing the Leviathan project, the Israeli government implemented the natural gas regulatory framework and approved the Leviathan plan of development (POD), platform location and pipeline connection in Northern Israel,” Paula Beasley, Noble Energy senior advisor, communications and media said.
Earlier this month, the partners authorized operator Noble Energy Mediterranean to seek the FEED contract. The partners are also working to close other agreements for the purchase of equipment and/or services related to Leviathan’s POD as approved, with the expectations to sign off on them in the near future, Delek Group said.
The FID based on the POD, in anticipated for Q4 2016.
"Timing of FID will depend on completion of four critical workstreams, which we are working diligently to complete: regulatory approvals, finalization of gas sales agreements, technical work and financing," Beasley said.
In order to meet its deadline, the Delek Group said that the Leviathan partners "are advancing negotiations at various stages with potential customers, both in the local market and for export, to sign contracts for the supply of natural gas from the Leviathan field.”
Based on the planned timetable, the FID will allow for Leviathan’s first gas production in Q4 2019.
“In addition, Noble Energy and partners have contracted approximately 100 MMcf/d from Leviathan to new Israeli domestic customers, and we continue to progress marketing for substantial additional volumes to customers in both Israel and the region,” Beasley said.
On 2 June, Noble received approval from Israel’s Petroleum Commissioner in the Ministry of National Infrastructure, Energy and Water Resources to move forward with the development of Leviathan, in addition to entering into a $2.5 billion deal to supply up to 473 Bcf from the highly anticipated project.
Leviathan, located in the Levantine Basin in the Mediterranean Sea, is 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 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.
According to Noble Energy, Leviathan is expected to provide a second source of supply and entry point into Israel's domestic natural gas transport system, while also delivering exports to regional countries.
Noble Energy operates Leviathan with a 39.66% working interest with its Leviathan partners: Delek Drilling (22.67%), Avner Oil Exploration (22.67%), and Ratio Oil Exploration (15%).
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