East Med: Leviathan FID Stalls As ExxonMobil Looks To Cyprus Offshore

Israel and Cyprus launched bid rounds in 2016 but with contrasting fortunes. Israel boasts some 40 tcf of proven gas reserves in its offshore but there has been scant interest in acreage put on offer in November. Next door in Cyprus ExxonMobil, Eni and Total are expecting to conclude negotiations with Nicosia.

The partners in Israel’s 2010, 22 tcf Leviathan gas discovery are edging towards reaching a final investment decision (FID) on the giant field. Majority shareholder, Tel-Aviv based Delek, signed a conditional $1.75bn loan agreement with HSBC and JP Morgan on 26 November (MEES, 2 December 2016).

But despite the boards of both Delek (45.34%) and fellow Israeli partner Ratio (15%) giving the go-ahead for FID, the field’s operator, US-firm Noble (39.66%), has remained more cautious and has not yet sanctioned the field’s development.

Noble has not commented on this apparent stall, but MEES understands its decision to hold back is based largely on waiting for a vital gas sales deal to Jordan to be given the green light by Amman. (CONTINUED - 1231 WORDS)

DATA INSIDE THIS ARTICLE

table Leviathan Gas Sales Deals
chart Tamar On Course For Record 2016(Mn Cfd)
table Cyprus 2016 Bid Round