Sarah Parker Musarra
Some publications, including Israeli business news outlet Globes, have reported that Leviathan’s partners are considering cutting the natural gas field’s development in half in case that exportation to Egypt does not occur as planned.
Citing an unnamed source, Globes reported that the Leviathan consortium is considering halving the production capacity of the development’s planned FPSO, which was originally slated to produce 16 bcm of natural gas annually.
In its issued statement, Delek Group said that the current plan is still in effect.
Contrary to what has been published, the basic outline development plan for the Leviathan field, advanced by the project partners, is intended to produce and handle a maximum daily output of natural gas of approximately 1.6-1.8 bcf (maximum of 16-18 bcm) using various engineering alternatives, Delek’s release said. This is in order to supply gas from the Leviathan field to customers in the Israeli market, to NEPCO in Jordan, customers in Egypt (mainly BG), and to the Palestinian Authority, in accordance with the letters of intent signed to date.
“The basic development plan outline has not been altered,” it continued.
Delek said that the partnership is required to assess “different possibilities to adapt the capacity of the development plan to the various marketing programs for gas from the Leviathan field.”
In May 2014, operator Noble Energy first announced that the field consortium had signed a preliminary deal with BG Group to export gas to Egypt. In late November 2015, another agreement was signed to export to the country. Days ago, Delek refuted reports that these negotiations had broken down.
Noble Energy has set a 2018 start-up date for the field. It holds a 39.66% stake in the field and the operatorship. Avner Oil Exploration holds 22.67%, as does Delek. Ratio Oil Exploration (1992) – Limited Partnership holds the remaining 15%.
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