Noble gets POD approval for Leviathan field development off Israel

Noble Energy Inc., Houston, reported it has received approval from the Petroleum Commissioner in the Ministry of National Infrastructure, Energy, and Water Resources for the development of the deepwater Leviathan field project offshore Israel.

Last month, the Israeli cabinet approved a revised outline for gas regulation needed for development of Leviathan and expansion of nearby Tamar field (OGJ Online, May 23, 2016).

The approved plan of development (POD) involves a subsea system that connects production wells to an offshore fixed platform with tie-in onshore in northern Israel. The fixed platform’s initial capacity is expected to start at 1.2 bcfd of gas, but will be expandable to 2.1 bcfd.

Leviathan is expected to provide a second source of supply and an entry point into Israel’s gas transportation system, while also delivering exports to regional countries, Noble said.

Separately, Noble said it signed a gas sales and purchase agreement to supply gas from Leviathan field to IPM Beer Tuvia Ltd. Under the agreement’s terms, Noble and the Leviathan partners will supply a gross quantity of as much as 473 bcf of gas to a newbuild independent power facility over an 18-year term, or as much as 72 MMcfd. The company expects gas sales to IPM to start once the field starts up.

The price for the gas is linked to the Public Utility Authority Index and includes a firm floor price, the company said. Noble expects total gross revenues under the contract to be in excess of $2.5 billion.

Noble Energy operates Leviathan with a 39.66% working interest. Other interest owners are Delek Drilling and Avner Oil Exploration, each with 22.67%, and Ratio Oil Exploration (1992) LP with the remaining 15%. Leviathan is thought to hold an estimated 22 tcf of recoverable gas resources.