Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) provides below an Immediate Report published by each of Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership ("the Partnerships") concerning the decisions taken for development of the Leviathan Field in order to produce natural gas by the end of 2019.
Pursuant to what was stated in the Partnerships' Annual Reports dated December 31, 2015 that were published on March 28, 2016 ("the Annual Reports") concerning the updated development plan for the Leviathan Field ("the Development Plan"), and having received the regulatory approvals and progress in the technical agreements concerning development of the Leviathan Field, including approval of the Development Plan by the Petroleum Commissioner at the Ministry of National Infrastructures, Energy and Water Resources, as stated in the Immediate Report dated June 2, 2016,
entering into an agreement to receive Front End Engineering Design (FEED) services for the production platform as approved in the Development Plan, as stated in the Immediate Report dated June 22, 2016,
and approval of the budget to develop the Leviathan Field in the amount of USD 119 million (100%) for 2016 up until the end of January 2017, as stated in the update to the Partnerships' Periodic Report dated June 30, 2016, published on August 24, 2016;
in light of the agreements for the supply of natural gas from the Leviathan Field to Edeltech Ltd, as stipulated in the Periodic Report, to I.P.M Beer Tuvia Ltd, as stated in the Immediate Report dated May 29, 2016,
to the Electric Power Company of Jordan (NEPCO), as stated in the Immediate Report dated September 29, 2016,
to Paz Ashdod Oil Refinery Ltd, as stipulated in the Immediate Report dated November 24, 2016,
and to Or Power Energies (Dalia) Ltd, as stated in the Immediate Report dated December 1, 2016;
and in light of signing the Commitment Letter between the Partnerships and HSBC Bank PLC and J.P. Morgan Limited to sign a financing transaction to fund the Partnerships' share of the development of the Leviathan Field, as detailed in the Immediate Report dated November 27, 2016, the Partnerships announce as follows:
Having assessed the Development Plan, the work plan and the proposed budget for the development of stage 1A of the Development Plan, with a capacity of 12 BCM per annum (1.2Bcf/d), at a scope of USD 3.5-4 billion (for 100% of the rights in the Leviathan Field),
the Board of Directors of the General Partner has decided to approve the said Development Plan, work plan and budget, and has authorized the Partnerships' managements to approve the FID for the development of the Leviathan Field as soon as possible, in accordance with the provisions of the JOA, in order to facilitate the start of natural gas production from the Leviathan Field, in accordance with the timetables as published, by the end of 2019.
Asaf Bartfeld, President and CEO of Delek Group, Chairman of Delek Drilling: “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’ managements to approve the Leviathan FID, will allow us 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”.
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Having assessed the Development Plan, the work plan and the proposed budget for the development of stage 1A of the Development Plan, with a capacity of 12 BCM per annum (1.2Bcf/d), at a scope of USD 3.5-4 billion (for 100% of the rights in the Leviathan Field),
the Board of Directors of the General Partner has decided to approve the said Development Plan, work plan and budget, and has authorized the Partnerships' managements to approve the FID for the development of the Leviathan Field as soon as possible, in accordance with the provisions of the JOA, in order to facilitate the start of natural gas production from the Leviathan Field, in accordance with the timetables as published, by the end of 2019.
Asaf Bartfeld, President and CEO of Delek Group, Chairman of Delek Drilling: “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’ managements to approve the Leviathan FID, will allow us 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”.
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