Financing Constraints Hamper Leviathan Development

The partners in Israel’s huge Leviathan offshore gas field are struggling to pull together the finances for developing the field, delaying the consortium’s final investment decision.

Leviathan’s partners, Houston-based Noble Energy (39.66%) and Israeli firms, the Delek Group (45.34%) and Ratio Oil (15%) last month officially submitted a $6.5bn development plan for the field’s first development phase to Israel’s Energy Ministry. The plan involves a 1.6bn cfd floating production storage and offloading (FPSO) vessel that will be able to supply gas via pipeline to Israel, Egypt, Jordan, the Palestinian Authority (PA) and Cyprus (MEES, 5 September).

The consortium has entered into a number of provisional deals to this end. It has signed letters of intent with BG to supply the UK firm’s idle LNG plant in Idku on the Egyptian coast with 3.75 tcf of gas over 15 years, with Jordan’s National Electric Power Company (NEPCO) to supply 1.6 tcf of gas for 15 years, and with the PA to supply 0.17 tcf for 20 years. It has also entered into a tender to supply Cyprus with 0.15-0.35 tcf of gas over 7-10 years. (CONTINUED - 1160 WORDS)


table Tamar Gas Sales Deals