Leviathan Gas Ready By Early 2017

Published at 04:00PM - 03/11/16

The US energy major Noble Energy announced progress towards the sanctioning of the giant Leviathan gas field offshore Israel.

According to the firm’s third quarter results, it expects to make a Final Investment Decision (FID) on field development as soon as late 2016 or early 2017.

“At Leviathan, we are continuing to target a final investment decision around year-end or early next year. We have now contracted up to 450 million cubic feet of gas per day for 15 years,” Noble Energy EVP Operations, Gary W. Willingham, said.

Leviathan Gas Ready By Early 2017

In the meantime, the company said it is working to make the final investment decision (FID) in the next few months, while also trying to secure new sales contracts.

So far, most of the gross revenue from the Leviathan project is expected to come from a deal signed with Jordan – a total of US$10 million (£8 million).

Leviathan Major Gas Project Postponed
Noble Energy East Mediterranean assets

The company did not provide any further updates on when it will hit first gas in the Leviathan development, but it had been previously said that this would occur in the fourth quarter of 2019.

“Over the next couple of months, we expect to finalise remaining key milestones for sanction,” Willingham explained.

“This includes additional domestic sales contracts and financing plans, as well as completion of the engineering work, project cost estimates and required construction permits,” he stated further.

Leviathan Platform to Reach 2.1 bn Cubic Feet

Overall, the project holds estimated recoverable gross natural gas resources of 22 trillion cubic feet.

The development comprises a subsea system to connect production wells to a fixed offshore platform with tie-in onshore.

The platform is expected to start with a capacity of 1.2 billion cubic feet of natural gas per day and eventually reach 2.1 billion cubic feet.

According to Noble, work is also progressing in terms of the front-end engineering and design of the platform.

Last updated on 07:25PM - 04/11/16