Israel's Leviathan gas reserves estimate raised by 16 pct | Reuters

Israel's Leviathan gas reserves estimate raised by 16 pct

Sun, Jul 13 05:04 AM EDT

JERUSALEM, July 13 (Reuters) - The estimated size of natural gas reserves in Israel's Leviathan field has been lifted by 16 percent, partners in the field said on Sunday.

Leviathan, discovered in 2010 off Israel's Mediterranean coast, is the world's largest offshore gas find in the past decade and is expected to provide the country with greater energy independence. Production is slated to begin in 2017.

Based on updated analysis by consultant Netherland Sewall & Associates (NSAI), the reserves estimate was increased to 21.93 trillion cubic feet (620 billion cubic metres) from 18.91 tcf.

The high estimate was raised by 10 percent to 26.52 tcf, while the low estimate was increased by 11 percent to 16.58 tcf.

NSAI estimates that the field holds 39.4 million barrels of condensate, up from 34.1 million.

The increases follows expansion of Leviathan's database, including 3D seismic surveys and laboratory analysis.

Texas-based Noble Energy is the field's operator with a 39.66 percent stake. Avner Oil and Delek Drilling - subsidiaries of Delek Group - hold a combined 45.34 percent and Ratio Oil has the remaining 15 percent.

Delek Drilling said the higher reserves ensure Israel's energy independence for decades to come.

"The dramatic increase in Leviathan's gas reserves gives a wide range of export options and bases Israel's position as a leading player in the international energy map with gas reserves of 1,000 billion cubic metres (bcm)," Delek Drilling CEO Yossi Abu said.

Along with Leviathan's 620 bcm, the Tamar field - which started production last year - has 303 bcm, while two smaller sites hold 58 bcm.

Israel's government has decided to allow exports of up to 40 percent of the gas reserves.

Last month, the partners in Leviathan said they had signed a preliminary agreement with British oil and gas company BG Group to negotiate a deal to export gas to BG's liquefied natural gas (LNG) plant in Idku, Egypt. (Reporting by Steven Scheer; Editing by David Goodman)

Link to source: http://mobile.reuters.com/article/idUSL6N0PO08Q20140713?irpc=932

Energy Ministry consultants say Leviathan not as big as previously estimated | Haaretz

Energy Ministry consultants say Leviathan not as big as previously estimated

Two separate companies say the offshore natural gas field may be 5-10% smaller than previously predicted.

By Avi Bar-Eli | Apr. 6, 2014 | 4:13 AM

Drilling at the Leviathan offshore natural gas field. Photo by Courtesy Albatross

By Eran Azran | Mar. 27, 2014 | 7:30 AM | 1

As Israel wrestles with how to manage the major natural gas finds that have been discovered off the country’s Mediterranean coast in recent years, the Energy and Water Resources Ministry is now looking into the possibility that the biggest find – the Leviathan field – may be 5% to 10% smaller than previously estimated.

TheMarker has learned that the issue arose several months ago as a result of calculations by two energy resource inspection and certification companies – SGS of the Netherlands and IHS CERA of the United States. The firms were hired by the Energy Ministry to validate the data the ministry received from natural gas exploration companies operating in Israel, and it is understood that the two companies’ estimates for the Leviathan field were somewhat lower than those Leviathan partner Noble Energy of Texas had reported.

Based on a professional opinion by the NSAI engineering firm, Noble had reported prospects under the best case scenario of extracting 535 billion cubic meters of gas from Leviathan. It is believed that the assessments of the two firms hired by the Energy Ministry were 5% to 10% lower. This would not only reduce the estimated value of the gas at the Leviathan site, but could also result in a reduction of the amount available by the Leviathan partners for export (the Israeli government has capped the amount of gas reserves that can be exported at 40%).

Over the weekend, industry sources reacted cautiously to the disparity, saying that it’s a matter of interpretation. They added that the two firms hired by the ministry did not take into consideration recent data from drilling at the area of the site known as Leviathan 4. The Energy Ministry declined to comment on the apparent disparity, saying that information “relevant to the sector” was examined on a regular basis by its own staff and its consultants. Noble and Delek refused to comment.

The Delek group currently owns 45% of Leviathan through its Avner and Delek Drilling units, while Noble Energy controls 40% and Ratio Oil Exploration owns 15%. Australia’s Woodside Petroleum has plans to acquire a 25% stake in the site, but hasn’t finalized its commitment while seeking better tax treatment from the Israeli government.

The ministry is thought to be reluctant to release the conflicting data both because of its commercial and public sensitivity and due to efforts first to investigate the reason for the discrepancy. There have been a number of meetings between representatives of Noble Energy, NSAI and the ministry’s two consulting firms on the issue in recent months.

Link to source: http://www.haaretz.com/business/.premium-1.583960