Leviathan partners, Delek Drilling and Avner Oil Exploration have authorized Noble Energy, the operator of the Leviathan project to enter into a front end engineering design contract (FEED) for the production platform for the field.
Media reports show that the US$120 million deal has been given to Wood Group Mustang, although, the partners have not confirmed the agreement.
The partners said in a statement that talks are ongoing to conclude agreements for the purchase of equipment and/or services related to the development plan.
Under the development plan, approved earlier in June, the partners plan to develop eight production wells and tie them back by a subsea pipeline to a fixed platform to be built offshore. Natural gas will be transported from the platform to the Israel National Gas Lines transportation grid.
The facilities will have the capacity to produce 21 billion cubic meters per year.
Leviathan partners noted that the final investment decision is targeted for the fourth quarter of 2016 with the first production from the field in the fourth quarter of 2019.
Contracts for the supply of natural gas from the field are in the advanced stage of negotiations the partners said.
Partners in the Leviathan field are Noble Energy with a 39,66 percent with Avner Oil and Delek Drilling both holding 22.67 percent and Ratio Oil Exploration owning a 15 percent stake.
Delek seeking Dolphin gas field approval
In a separate statement, Delek said its gas subsidiaries have been informed by the petroleum commissioner at the ministry of national infrastructures, energy and water that the Dolphin natural gas field in the License 351/Hanna will be granted a lease once certain conditions are met.
According to the commissioner’s response, the license partners should provide the commitment to develop the Hanna license together with the Phase 1 of the Leviathan field by August 1, 2016. Additionally, the partners have to provide a plan of the requested area to be declared as a discovery.
The lease is expected to be granted by December 1, 2016 and the development is scheduled to be completed by the end of 2019.
LNG World News Staff