The Israeli government entered into an agreement with the consortia of Noble Energy and the Delek Group to move forward with development plans for the Leviathan field in addition to Karish, Tanin and the further development of Tamar.
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Prime Minister Netanyahu. From GPO. |
Noble Energy told OE: "On August 13, Prime Minister Benjamin Netanyahu and Minister of Energy Dr. Yuval Steinitz announced that the Government of Israel finalized the regulatory framework which provides a path forward for the development of Leviathan, Karish, Tanin and the further development of Tamar, and for the citizens of Israel to realize the benefits of the country’s vast offshore resources. The framework presented on August 13 acknowledges the importance of moving forward with Israel’s discovered oil and natural gas resources without delay, establishes a foundation for competition, and ensures that Israel’s citizens pay a fair price for natural gas. The framework also promises a stable investment climate that will enable the continued exploration and production of Israel’s offshore resources. Noble Energy welcomes the clarity this framework will bring."
The possibility of the deal came to light on 25 June when Israel Prime Minister Benjamin Netanyahu announced that the Israeli security cabinet unanimously approved accelerating Leviathan.
"The agreement will bring in hundreds of billions of shekels (one shekel equals $0.26) to Israeli citizens over the coming years," Netanyahu said in a televised statement according to the Agence France-Presse. "I shall bring this agreement to the cabinet on Sunday (16 August). I'm sure it will pass by a large majority of votes."
One change to the initial plan is that the price of gas in the new agreements will be lower, while the developers will also commit to invest US$1.5 billion in developing Leviathan in the next two years, according to a Reuters report.
Leviathan, one of the largest discoveries in the past decade, is located in the Mediterranean Sea, about 130km off the coast of Israel in 1600m water depth.
It is Noble’s largest exploration discovery in the company’s history with an estimated 19 Tcf of gross natural gas resources. Noble had anticipated that the first phase of development at Leviathan to be approved in 2014, but had experienced several setbacks from Israel’s government.
Tamar was first discovered in 2009 and went into production in 2013. At that time it was estimated to contain gross mean resources of 10 Tcf of natural gas.
Noble operates Leviathan with 39.66% interest. Partners include Delek Drilling (22.67%), Avner (22.67%), and Ratio Oil Exploration (15%).
As of now, Noble operates Tamar with 36%. Its partners include Isramco Negev 2 LP (28.75%), Delek Drilling (15.625%), Avner (15.625%) and Dor Gas Exploration (4%).
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