"Not developing Leviathan costs state $3b a year"

Binyamin Zomer

Noble Energy Israel manager Binyamin Zomer said Leviathan production had already been delayed from 2016 to 2018.

Speaking at the 2014 UOG Energy Conference at the Dead Sea, Noble Energy Inc. (NYSE: NBL) Israel Country Manager Binyamin (Bini) Zomer said, "Each year that Leviathan is not developed costs $3 billion. The Leviathan project is designated primarily for export, because the Tamar reservoir is enough to supply all of Israel's natural gas needs in the coming years." He added that the first stage of developing Leviathan would cost $6.5 billion, including construction of a floating production, storage, and offloading (FPSO) facility with a capacity of 16 BCM per year. This facility will be hooked up to the pipeline supplying gas to the Israeli economy. The reservoir partnership hopes that pipeline will be laid and connected to the gas liquefying facility in Egypt.

Zomer also mentioned the state's share of oil and gas profits, which he said was 65%, and was expected enrich the state treasury by $20 billion over the coming decade. "The state is our biggest partner," Zomer asserted. He said that the Leviathan project had been slated to commence in 2016, but had been delayed until 2018, a delay that had cost the state $3 billion a year.

Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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