BG in talks on Israel-Egypt subsea gas pipeline

Offshore staff

TEL AVIV, Israel – BG International is in negotiations to take gas from the deepwater Leviathan field offshore Israel to Egypt.

Operator Noble Energy and its partners have signed a non-binding letter of intent with BG, which could involve the supply of 7 bcm/yr (200 bcf/yr)  over 15 years to BG’s existing LNG facilities in Idku.

According to Isarel’s Delek Group, the gas would be exported from an FPSO on the Leviathan field through a subsea pipeline to Idku. The gas price for the binding agreement will be determined in a formula to be ratified by all parties.

Development of Leviathan remains contingent on final investment decisions by each of the field partners and receipt of approvals from the authorities in Israel and Egypt.

Partners in the Leviathan project are:

Noble Energy Mediterranean 39.66%
Avner Oil Exploration 22.67%
Delek Drilling 22.67%
Ratio Oil Exploration (1992) 15.00%.

06/30/2014

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