Israel’s Leviathan: Development Starts But Where’s The Sales?

Noble says it has ‘line of sight’ on how it will achieve the 1bn cfd start-up sales target on which its recently-sanctioned Leviathan field depends. This looks optimistic, especially with an upstart rival developer threatening to undercut it on price.

Texas-based Noble Energy, operator of Israel’s flagship 22 tcf Leviathan offshore gas development, says it has “up to 525mn cfd” of gas sales deal in place, with “pretty clear line of sight” on getting to the 1bn cfd total on which Phase 1 development is based.

Both figures look questionable. The 525mn cfd figure is substantially higher than the 455mn cfd (as averaged over the duration of the respective contracts) implied by individual deal announcements (see table and MEES, 6 January).

A Noble spokesman tells MEES that the difference is largely accounted for by an expected hike from 290mn cfd to 350mn cfd in the volumes to be supplied to Jordan’s state power company. As this is not only by far the largest of the current ‘deals’ but also the shakiest, this hardly inspires confidence. (CONTINUED - 1883 WORDS)

DATA INSIDE THIS ARTICLE

table Leviathan Gas Sales Deals
chart Tamar Posts Record 1q17 Output
chart Leviathan Stakes & Development Costs