Tamar FLNG project for deepwater offshore Israel moves closer

Offshore staff

TEL AVIV, Israel – Delek Group says the deepwater Tamar gas field in the Levantine basin remains on track for production during the first half of 2013.

Gas will flow from Tamar through two 16-in. (40-cm) subsea pipelines to the nearshore Tamar platform, which is linked to an existing pipeline to the onshore terminal at Ashdod.

Among recent agreements signed by the Tamar partners, the most notable was a 15-year take-or-pay agreement under which Israeli utility IEC will purchase up to 78 bcm (2.75 tcf) with an option of up to 99 bcm (3.5 tcf) from the project. Cumulative revenues from this transaction could reach $23 billion if the option is exercised.

The partners have also signed a memorandum of understanding with Daewoo Shipbuilding, concerning construction of a floating LNG terminal.

The marketing company (a joint venture between Daewoo & Next Decade LLC) signed a letter of intent last month with Gazprom Marketing & Trading Switzerland AG, enabling non-exclusive and non-binding negotiations for acquisition and sale of LNG produced at the proposed terminal.

Elsewhere in the Israeli offshore sector, Delek estimates reserves at the Leviathan discovery presently at 16.7 tcf. The Homer Ferrington rig is working on the Leviathan 1 well where operations have resumed following a suspension last April 2011. The drilling program has an estimated budget of $45 million, excluding any potential production tests.

Due to the decline in gas supplies from the shallow-water Mari-B reservoir, the Yam Tethys consortium is developing the Noa North accumulation which should enter production during the second half of this year. Exploratory drilling continues on the Pinnacles #1 well close to Mari-B, which contains prospective resources estimated at 47.6 bcf.

4/02/2012

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