Leviathan partners will produce natural gas from the Leviathan field by the end of 2019, Israeli companies Delek and Avner announced simultaneously on Monday.
The first stage of the Leviathan will be developed for the domestic Israeli and Jordanian market with estimated costs at between $3.5 and $4 billion, the press release said.
Israel's Energy Ministry approved the first stage of the development plan from the Leviathan field with a capacity of 12 billion cubic meters per annum in June 2016.
Previously, shareholders of Leviathan agreed to supply natural gas from the field to two power stations owned by local electricity producer Edeltech Group and I.P.M Beer Tuvia Ltd. The I.P.M Beer Tuvia company plans to operate power stations in the Beer Tuvia Industrial Zone, the Electric Power Company of Jordan (NEPCO), Paz Ashdod Oil Refinery Ltd. and Or Power Energies (Dalia) Ltd.
Leviathan partnerships signed a financing transaction agreement with HSBC Bank Plc. and J.P. Morgan Limited for the development of the Leviathan Field, according to the statement.
"Approval of the development plan, work plan and proposed budget for the development of stage 1A of the Leviathan project, as well as the authorization of the Delek Group partnerships' management to approve the Leviathan development, will allow us to meet the group's target of first gas from Leviathan to the Israeli market and to countries in the region by the end of 2019," Asaf Bartfeld, president and CEO of Delek Group said in the press release.
Partners in the Leviathan Field and their percentage holdings are as follows, U.S. Noble Energy Mediterranean has a 39.66 percent share, Avner Oil Exploration Limited Partnership owns a 22.67 percent stake, Delek Drilling Limited Partnership has a 22.67 percent interest and Ratio Oil Exploration (1992) Ltd. Partnership has a 15 percent share.
(Anadolu Agency)
