Leviathan Partners Line Up Funding But Still Short On Sales

Tel-Aviv based Delek Group, the majority stakeholder in Israel’s key offshore gas find, the 22 tcf Leviathan field, on 26 November reached a ‘critical milestone’ towards a supposedly-imminent final investment decision by signing a $1.75bn loan agreement with HSBC and JP Morgan.

Delek has until 20 February next year to take advantage of the $1.5-1.75bn limited recourse project-finance agreement, with equal sums to be provided by each of the two banks.

Delek’s loan agreement should be enough to cover its $1.6-1.8bn share of Phase 1-A Leviathan development costs based on its 45.34% project stake and operator Noble’s overall $3.5-4bn Phase 1-A cost estimate. US firm Noble, with 39.66%, is on the hook for around $1.5bn (see chart). The remaining partner, Israeli firm Ratio with 15%, has already raised almost $200mn after a successful IPO offering last month and MEES understands the firm is negotiating a loan of around $400mn to help cover the rest of its share of development costs. (CONTINUED - 963 WORDS)

DATA INSIDE THIS ARTICLE

table Leviathan Phase 1 Share Of Funding