Delek Group: Leviathan partners reach FID

Delek Group said a final investment decision for the development of the first phase (Phase 1A) in the development plan of the Leviathan gas field has been reached by the project partners. 

The partners reached the FID on Thursday, February 23, setting aside a budget of approx. US$3.75 billion, with the aim of allowing commencement of the piping of natural gas from the Leviathan Reservoir by the end of 2019.

The partnerships intend to finance its share in the Leviathan reservoir development costs through credit the project partners secured from a consortium of local and foreign finance providers.

On Wednesday, February 22, Delek Group’s two units, Delek Drilling and Avner Oil signed a $2.5 billion loan deal with a consortium of more than 20 Israeli and international financial institutions headed by HSBC Bank and J.P. Morgan.

The Leviathan project is operated by Noble Energy with a 39.66 percent working interest, with other interest owners being 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.