Israel revises Leviathan lease terms

Offshore staff

TEL AVIV, Israel – Delek Group says Israel’s government has granted two title deeds in lieu of offshore licenses 349/Rachel and 350/Amit licenses.

Both encompass the giant deepwater Leviathan gas discovery. I/14 Leviathan South comprises part of the Rachel license and I/15 Leviathan North part of the Amit license.

Noble Energy is operator, in partnership with Avner Oil, Delek Drilling, and Ratio Oil. 

Within six months, the partners must submit a development plan that includes at least 540 bcm (20 tcf) for Israel’s domestic market, with commercial production to start 48 months from the lease grant date.

The same partners have agreed to sell their interests in the offshore 366/Alon C and 364/A licenses containing the Karish and Tanin gas discoveries to a party not related either to themselves or the other partners in the Tamar and Leviathan fields.

Additionally, they will grant the potential buyer an option to buy about 15.2 bcm (500 bcf) of gas from the Leviathan reservoir.

Last week Woodside Petroleum confirmed that it had not reached agreement with the Leviathan joint venturers on joining the development project. An earlier memorandum of understanding targeted a decision by March 27.

Discussions continue with the Israeli government to resolve the remaining issues and to execute definitive agreements.

03/31/2014

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