Leviathan partners draw up terms for gas exports to Egypt

Offshore staff

TEL AVIV, Israel – The partners in the deepwater Leviathan gas discovery offshore Israel have signed a non-binding letter intent with Dolphinus Holdings concerning exports to consumers in Egypt.

According to Delek Group, the parent company of two of the partners in Leviathan (Avner Oil Exploration and Delek Drilling) the various parties will conduct negotiations on an agreement for the supply of natural gas from the field through an existing pipeline operated by East Mediterranean Gas (EMG).

The letter of intent includes various commercial conditions for the proposed transaction that will serve as a basis for negotiating the binding agreement, involving an estimated supply of 4 bcm/yr for 10-15 years.

Gas would be initially transported using the transmission system of Israel Natural Gas Lines (Natgaz) to Ashkelon and from there to the local market in Egypt via EMG’s pipeline.

Signing of the binding agreement depends on Israel’s government approving the Leviathan field development decision and a final investment decision by the Leviathan partners; and confirmation of the accords with Natgaz and EMG.

11/27/2015

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