The partners involved in Israel's giant Leviathan natural gas field said on Jan. 17 they have entered talks to supply 14.8 billion cubic meters (Bcm) of natural gas over 17 years to Edeltech, an Israeli private power provider.
The two sides have signed a non-binding letter of intent to negotiate a binding deal, Delek Drilling and Avner Oil said in a statement.
Based on prices under similar agreements signed in the region, the deal could be worth about $3 billion.
In 2016, Edeltech committed to buy 6 Bcm of gas from Leviathan for its power plants. Edeltech is a partner in the $1.3 billion Dorad Energy plant as well as the Ashdod and Ramat Negev co-generation plants.
Delek Drilling and Avner each hold 22.67% of Leviathan, while Texas-based Noble Energy Inc. (NYSE: NBL) owns 39.66% and Ratio Oil holds the remaining 15%.
Leviathan, which is expected to start production in 2019, was discovered in the eastern Mediterranean in 2010. Much of its estimated 622 Bcm of gas is earmarked for exports.
Recommended Reading
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.
US Drillers Add Oil, Gas Rigs for Third Time in Four Weeks
2024-02-09 - Despite this week's rig increase, Baker Hughes said the total count was still down 138 rigs, or 18%, below this time last year.
Sangomar FPSO Arrives Offshore Senegal
2024-02-13 - Woodside’s Sangomar Field on track to start production in mid-2024.
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.