Delek grabs funds for Leviathan gas field development

Israel’s Delek Group secured a loan of US$1.5 to $1.75 billion, with HSBC Bank and JP Morgan to finance the development of the Leviathan gas field.

According to the group’s statement issued on Sunday, the loan will be divided into tranches, each of which can be drawn down once the conditions have been fulfilled.

Asaf Bartfeld, president and CEO of Delek Group said that, “closing of the financing agreement brings Delek Group and its gas partnerships closer to taking the final investment decision (FID) to develop the Leviathan field.”

In June this year, the Israeli government approved the development of the Leviathan project.

Noble Energy, the operator of the Leviathan with a 39.66 percent working interest, then said that that the platform’s initial capacity will start at 1.2 billion cubic feet of natural gas per day and is expandable to 2.1 Bcf/d.

In September, the Leviathan partners struck a deal with the National Electric Power Company of Jordan (NEPCO) for the supply of approximately 1.6 trillion cubic feet of natural gas from the Leviathan field, or 300 million cubic feet per day over a 15-year term.

Other partners in the Leviathan project besides Noble Energy are two Dlek Group companies, Delek Drilling with 22.67 percent, Avner Oil Exploration with 22.67 percent, and Ratio Oil Exploration (1992) Limited Partnership with the remaining 15 percent.

LNG World News Staff