Leviathan gas field receives $3.75 billion approval

Leviathan gas field receives $3.75 billion approval

A US$3.75 billion final investment decision (FID) has been made on the first phase of the largest energy project in Israel’s history, the Leviathan natural gas field.

Gas extracted from the vast reservoir, located 100km west of Haifa, will be available on the Israeli market by the end of 2019, according to a 2016 government plan.

The $3.75 billion FID follows an initial $1 billion that has already been spent on exploration, appraisal and planning activities, since the reserve was first discovered in December 2010.

The project is part owned by Texas-based Noble Energy, who holds a 39.7% stake, while Delek Drilling and Avner Oil Exploration both own 22.7% stakes. Ratio Oil of Israel also holds a 15% share in Leviathan.

Delek Drilling’s chief executive officer Yossi Abu said: “We will continue our activity to develop and expand our oil and gas assets in Israel and Cyprus.”

When the Leviathan project is completed, it will produce around 12 billion cubic metres of gas annually, doubling the amount of gas available in the Israeli market.