The Israel government will grant a lease to the license 351/Hannah (Hanna) partners if they submit an “irrevocable commitment” by Aug. 1 to jointly develop the Hannah license and Phase 1 of the nearby Leviathan field, Delek Group said. Also by that deadline, the license holders must provide a plan of the requested area in the Dolphin reservoir they are seeking to be declared a discovery.
If those conditions are met, Delek said that Israel’s Petroleum Commissioner at the Ministry for National Infrastructures, Energy and Water will grant the license partners a lease by Dec. 1, so that the development can be completed by the end of 2019.
“The license partners are of the opinion that they have found a discovery that entitles them to receipt of a lease in accordance with the provisions of the country’s Petroleum Law, 1952,” Delek Group said in a statement. “It is the partnerships' intention to continue to interact with the commissioner to obtain a lease and to fix a timetable for development of the field, taking into account inter alia the characteristics of the field and the applicable markets, as is usual in the oil and gas industry around the world, in accordance with the provisions of the Petroleum Law.”
Last December, Delek informed that a Netherland, Sewell & Associates report pronounced the Hanna license area a discovery according to the country’s Petroleum Law, 1952. Earlier this year, the government requested additional information from the partners. The Hannah license partners include the Delek Group gas subsidiaries Delek Energy Systems Ltd., Avner Oil & Exploration LP, and Delek Drilling LP.
Leviathan operator Noble Energy Mediterranean Ltd. received the green light from the Petroleum Commissioner to develop the field, located about 30 km (19 mi) from Dolphin, earlier this month.
Delek Drilling Ltd. Partnership and Avner Oil Exploration Ltd. Partnerships have authorized Noble Energy to enter into a $120-million front-end engineering and design agreement for the production platform, as approved in the development plan.
It should be noted that the Leviathan partners are working to close other agreements for the purchase of equipment and/or services related to the development plan, as approved, and that they expect to sign off on them in the near future, Delek said.
“In this way, the Leviathan partners are continuing to work to complete the required actions in order to obtain a final investment decision (FID), based on the development plan, in 4Q 2016 and for that purpose are advancing negotiations at various stages with potential customers, both in the local market and for export, to sign contracts for the supply of natural gas from the Leviathan field, as stated in the annual reports,” Delek said. “Based on the planned timetable, receipt of the FID within said timeframe will allow commencement of gas production from the Leviathan project in 4Q 2019.”
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