Israel has reached a new deal with Texas-based Noble Energy Inc. and Israel's Delek Group that will allow the firms to move forward with development of the huge Leviathan natural gas field, Israel's finance minister said on May 18.
The Leviathan project hit a major obstacle in March when Israel's Supreme Court blocked a previous agreement that bound the state to the terms of the deal for 10 years. The agreement had meant the government would be committed not to change taxes, export quotas or other regulation.
The court's objection also rattled the broader exploration sector, where companies have been waiting to see how the saga plays out before investing in new offshore drilling.
Finance Minister Yuval Steinitz said the new agreement, which will be brought to the government for final approval in the coming days, gives the state more leeway to change policies if needed.
"The new version gives future government space to judge whether to change policies in the field of natural gas, should this be required," he said in a statement.
Noble said in a statement that it had held discussions with the government "to formulate stability language which enables us to continue to progress the Leviathan project on time lines previously indicated." "This is an important milestone in creating a stable investment environment," it said.
Delek declined comment.
Noble had warned that the court ruling could delay development of Leviathan, which it hoped to complete by the end of 2019. Steinitz said he hopes the new agreement will allow the companies to stay on schedule and push others to renew exploration.
Recommended Reading
Sangomar FPSO Arrives Offshore Senegal
2024-02-13 - Woodside’s Sangomar Field on track to start production in mid-2024.
NAPE: Chevron’s Chris Powers Talks Traditional Oil, Gas Role in CCUS
2024-02-12 - Policy, innovation and partnership are among the areas needed to help grow the emerging CCUS sector, a Chevron executive said.
CNOOC Makes 100 MMton Oilfield Discovery in Bohai Sea
2024-03-18 - CNOOC said the Qinhuangdao 27-3 oilfield has been tested to produce approximately 742 bbl/d of oil from a single well.
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
Proven Volumes at Aramco’s Jafurah Field Jump on New Booking Approach
2024-02-27 - Aramco’s addition of 15 Tcf of gas and 2 Bbbl of condensate brings Jafurah’s proven reserves up to 229 Tcf of gas and 75 Bbbl of condensate.