NBL/AVNR.L/DLEKG/RATI.L - Leviathan Offshore Gas Field - Levantine Basin - Project Profile

Noble Energy (NBL), Avner Oil and Gas LP (AVNR.L), Delek Drilling LP (DLEKG) and Ratio Oil Exploration (RATI.L) are undertaking the devleopment of a gas field in Mediterranean Sea off the coast of Israel.

The project involves the construction of various offshore infrastructures to explore and develop a natural gas field, which is expected to produce 1.2 billion cubic feet per day (Bcf/d) (33.9 million m3/day) in first phase and later expanded to 2.1 Bcf/d (59.4 million m3/day) in latter phases. The field is estimated to have a total gas reserve of 22 trillion cubic feet.

It includes the construction offshore production platform, a 130m vent boom, pumping stations, metering stations and other offshore infrastructure facilities, the installation of integrated control and safety systems and the laying of 500km undersea pipelines.

The gas will be transported via 500km long undersea pipeline from the Leviathan field to Turkey's southern Mediterranean coast.

The project is planned to be implemented in multiple phases.

The first phase includes the drilling of four subsea wells with a capacity of 300 million cubic feet per day (MMcf/d) of natural gas each. The scope of other phases is yet to be unveiled.

Netherland Sewell & Associates (NSAI) has been appointed as study consultant.

In February 2014, NBL and the Leviathan development partners signed a memorandum of understanding (MoU) to allow Woodside Petroleum to acquire a 25% interest in the 349 Rachel and 350 Amit licenses.

In May 2015, Noble Energy and partners signed a non-binding letter of intent with BG and the contract consists of to supply 7 billion m3 of natural gas per year.

On December 17, 2015, the government of Israel approved NBL to go ahead with the development of the project.

On June 2, 2016, the project secured approvals from the Ministry of National Infrastructure, Energy and Water Resources.

In June 2016, Wood Group Mustang was appointed to perform the front-end engineering and design (FEED) and detailed engineering work. The contract is valued at US$120 million.

On September 26, 2016, a gas export deal was signed with Natural Electric Power Company to export 1.6 trillion cubic feet of gas to Jordan for 15 years.

On November 24, 2016, Paz Oil Company Ltd subsidiary Paz Ashdod Oil Refinery signed a natural gas supply agreement worth US$700 million with the Leviathan development partners to supply 3.12 billion cubic meters (BCM) of natural gas over a maximum period of 15 years or until the Paz unit will end its need for quantities of gas.

On November 28, 2016, Leviathan Partners signed commitment letters after a long battle with bureaucracy with two major banks HSBC and J.P. Morgan and the funds of between US$1,500 million and US$1,750 million which would be used for the A1 development phase of the field.

In December 2016, Leviathan partners approved development plan and a budget of US$119 million was approved for development through the end of January 2017.

In April 2017, Heerema Marine Contractors was awarded a contract for transportation and installation services associated with the project.

On October 20, 2017, Heerema Fabrication Group (HFG) was awarded a procurement and construction contract for the vent boom associated with the project under for transportation and installation services awarded in April 2017.

On November 14, 2017, NBL appointed Gate Energy to help with the commissioning of the Leviathan platform in the Mediterranean Sea. Under the contract, Gate Energy will be responsible for topside commissioning planning, onshore commissioning execution and offshore commissioning services of the production platform for the project.

In February 2018, OneSurface, a division of Schlumberger secured an engineering and supply contract for a 2,000t single-lift process module. The scope fo the contract includes pre-treatment, salt removal and regeneration of monoethylene glycol (MEG) for re-injection in the subsea flowlines for hydrate inhibition. The Schlumberger PUREMEG reclamation and regeneration system, a proprietary technology that will be supplied as a single-lift module for installation on the production platform.

OneSubsea, a Schlumberger company, also secured a contract with the supply of 10,000-psi horizontal production trees, tree-mounted controls, off-tree controls and topside controls.

Construction works are underway on the platform and NBL scheduled to achieve the first production by the end of 2019.