The boards of the energy exploration partnerships Delek Drilling, Avner Oil and Gas LP (TASE: AVNR.L) and Ratio Oil Exploration (1992) LP (TASE:RATI.L) have approved the plan for development of the Leviathan offshore gas reservoir, the work plan and the proposed budget for development of stage A of the reservoir. This is the last stage before a final investment decision, which the boards of directors have authorized the managements of the partnerships to make.
The development plan for Leviathan was approved by the Ministry of National Infrastructures, Energy and Water Resources in June this year, and it is due to be carried out in two stages. Stage A is for the Israeli domestic market and the Jordanian market and, it is hoped, also for the Palestinian market. The cost of this stage is estimated at $3.5-4 billion, and the output of the pipeline that will bring the gas ashore will be 12 BCM (billion cubic meters). This stage includes four development drillings and the erection of a platform with gas treatment plants with a capacity of 12 BCM.
The Leviathan partners have so far signed contracts for the supply of gas to the Adeltech power plants in Haifa and Ashdod - 6 BCM over 18 years; the IPM plant in Be'er Tuvia - 13 BCM over 18 years; the Natural Electric Power Co. of Jordan - 45 BCM over 15 years (estimated); the Paz Ashdod Oil Refinery - 3.12 BCM over 15 years; and to Or Energies, which is constructing a power plant at Tzafit - 8.8 BCM over 20 years.
The partners in Leviathan are Noble Energy (39.66%); Avner Oil and Gas (22.67%); Delek Drilling (22.67%) and Ratio Oil Exploration (15%).
Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2016
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