Development of the Leviathan natural gas field will cost $8 billion and production will begin in late 2017 said Noble Energy Inc. (NYSE: NBL) EVP Eastern Mediterranean Keith Elliott at the "Globes" 2013 Israel Business Conference. "Leviathan is our next major project in Israel."
Elliott continued, "Leviathan will be developed in stages, a domestic component and an export component. The expected cost of developing the field is $8 billion, and we'll start production in late 2017, a year behind our initial estimate. The reasons for this are known, such as Israel's export policy. We need an environment that supports investment. We intend to develop Leviathan as fast as we can, and we're confident that the challenges will be solved. We're committed to working with our Israeli partners and the Israeli government."
Commenting on the potential of oil at Leviathan, Elliott said, "We've been working in the Mediterranean since 1998, and we have an ongoing work plan between Israel and Cyprus. We think that there is a strong probability of an oil discovery in this region."
As for the Tamar gas field, Elliott said, "The Tamar discovery should generate more than $30 billion for the Israeli economy. Tamar's performance has been outstanding. Within three days of the start of operations in March, we reached the field's full output. Noble Energy considers Tamar as its most important investment in Israel; what we owe Israel… We're expanding Tamar for the next stage, a compressor at Ashdod. A project like Tamar is technically complex, and there are challenges, such as bringing the gas ashore, government intervention in our sale contracts, and so on."
Elliott added, "We're continuing to drill and explore in Cyprus. We've completed the assessment for Block 12. We're planning its development. Finally, I wish to say that our goal is to supply energy to the world and improve people's lives. We believe that there is great potential in the Levant basin."
Published by Globes [online], Israel business news - www.globes-online.com - on December 8, 2013
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