On February 23, 2017, the Leviathan off shore natural gas reservoir partners adopted a Final Investment Decision (FID) for development of Phase 1A in the development plan for Leviathan Reservoir, at a capacity of approximately 12 Billion cubic metres (BCM) per year, with a budget of approximately $3.75 billion (for 100% of the rights in the Leviathan Reservoir), with the aim of allowing commencement of the piping of natural gas from the Leviathan Reservoir by the end of 2019, a Delek Group press release announced Thursday.
The Delek Group, Israel’s dominant integrated energy company, is the pioneering leader of the natural gas exploration and production activities that are transforming the Eastern Mediterranean’s Levant Basin into one of the energy industry’s most promising emerging regions. Having discovered Tamar and Leviathan, two of the world’s largest natural gas finds since 2000, Delek and its partners are now developing a balanced, world-class portfolio of exploration, development and production assets with total gross natural gas resources discovered since 2009 of approximately 40 Trillion Cubic Feet (TCF).
Asaf Bartfeld, President and CEO of Delek Group said in a statement: “The final investment decision in Leviathan, following the Natural Gas Outline Plan, is not only a substantial step forward for Delek Group, but a major leap for the Israeli energy industry and economy. Developing Leviathan and pursuing more export agreements, coupled with supply to the domestic market, will ensure energy security for Israel and will add to Delek Group’s stability.”
The Partnership intends to finance its share in the Leviathan Reservoir development costs, inter alia, through credit from a consortium of local and foreign finance providers, as specified in the Partnerships immediate reports of February 21, 2017.
The company noted that upon the adoption of a final investment decision, the contingency pertaining to part of the contingent resources in the Leviathan reservoir is fulfilled, to the best of the Partnerships’ understanding, these resources would be classified as reserves. Accordingly, the Partnerships are acting, together with Netherland, Sewell and Associates, Inc., for receipt of a reserves and contingent resources appraisal report for the Leviathan reservoir and for preparation of updated discounted cash flow figures. Upon receipt of such report and figures, the Partnerships shall release an immediate report accordingly.