Israel’s Leviathan: New Development Plan, Still No Anchor Sales Deal

The partners in Israel’s giant 22 tcf Leviathan offshore gas field have trimmed their estimate of development costs by $1bn. Though they have slated a final investment decision for Q4 this year, without key sales deals, the project will be going nowhere fast.

US-firm Noble Energy and its Israeli partners Delek and Ratio Oil submitted to Israeli authorities on 25 February a revised plan for Phase 1 development of the aptly name 22 tcf Leviathan offshore gas field.

The new plan will see the construction of a 21 bcm/year (2bn cfd) near-shore platform sending gas via pipeline to Israel and also to regional markets. But this will only happen if and when the partners firm up non-binding agreements to sell gas to the local Israeli market, Egypt and Jordan, and also potentially to Turkey. The field itself is 130km from shore in 1,500ms water depth.

The original development plan, filed in December 2014, envisaged a 16.5 bcm/year (1.6bn cfd) floating production storage and offloading (FPSO) vessel to be tied-back to shore – exactly where was left unclear (MEES, 27 February 2015). (CONTINUED - 956 WORDS)