Israel-Egypt gas pipeline deal seen imminent - REUTERS

NOVEMBER 3, 2019 / 11:32 AM
Steven Scheer

JERUSALEM (Reuters) - A deal that would transfer control of a natural gas pipeline between Israel and Egypt is expected to be closed in the next few days, the companies said on Sunday.

Texas-based Noble Energy (NBL.N), Israel’s Delek Drilling (DEDRp.TA) and Egyptian East Gas Co have partnered in a venture called EMED, which last year agreed to buy a 39% stake in the subsea EMG pipeline for $518 million that will carry Israeli gas exports to Egypt.

In a regulatory filing in Tel Aviv, Delek said the shares have already been transferred to the buyers while the funds are currently being held in a trust. It noted that no closing conditions remained.

“Upon the transfer of the full amount of the consideration to the sellers, which is expected to be performed in the coming days, the EMG transaction will be closed in practice,” Delek said.

IEC seeks Tamar, Leviathan bids for NIS 2b gas deal - GLOBES

3 Dec, 2018 14:19

Sonia Gorodeisky

Israel Electric Corp. is hoping to cut the price of gas by generating competition between the two partnerships.

Israel Electric Corporation (IEC) (TASE: ELEC.B22) has contacted both the Tamar and Leviathan partnerships, both partly owned by Yitzhak Tshuva, to provide bids to supply 2 billion cubic meters (BCM) of gas annually over two years, Delek Drilling LP (TASE: DEDR.L) notified the Tel Aviv Stock Exchange this morning. At current gas prices the deal has an estimate value of about NIS 2 billion.

According to the report, the gas is to be supplied between October 2019 and the end of June 2021. This time scale extends from when gas is due to begin flowing from the Leviathan reservoir to the start of supply of gas from the Karish reservoir, controlled by Greek company Energean Oil & Gas plc (LSE: ENOG; TASE: ENOG).

The aim of IEC is to try and cut the price of natural gas used in the production of electricity but a competitive process to procure amounts of gas above its commitment to the Tamar partners. At the same time, IEC is anyway trying to lower the price of gas in its agreement with the Tamar partners, which amounts to $6 per thermal unit, 33% over the price closed recently with Energean by private electricity producers.

Building New Natural Gas Rig Off Israel's Shores Poses High Ecological Risks, Expert Warns - HAARETZ

Jul 30, 2018 10:07 PMZafrir Rinat 

One of the world’s leading experts on the environmental consequences of gas and oil pollution, Prof. Rick Steiner, is warning of the risks posed by erecting a platform only 10 kilometers from Dor Beach to process natural gas from the Leviathan gas field.

He argued that it isn’t too late to rethink the idea and instead operate a floating platform much closer to the drilling site, which lies over 100 kilometers further from shore.

Steiner spoke Monday at a press conference held by Shomrei Habayit (“Homeland Guards”) an organization representing residents of the Carmel shore region that is battling against the platform’s construction.

Steiner prepared a detailed report for Shomrei Habayit saying that operating the gas platform near the shore increases the likelihood of serious damage to the marine environment and the beach, should there be a malfunction or a hostile attack on the facility.

Steiner criticized the planning and decision-making process. He noted, among other things, that in important documents dealing with the environmental impact of the platform’s activity, large sections were redacted because Noble Energy, one of the partners operating Leviathan, claimed they contained trade secrets.

Partners sign deal to export $15 billion in Israeli natgas to Egypt - REUTERS

FEBRUARY 19, 2018 / 2:42 PMReporting by Tova Cohen and Ari Rabinovitch

TEL AVIV (Reuters) - The partners in Israel’s Tamar and Leviathan natural gas fields have signed 10-year agreements to sell $15 billion worth of natural gas to Egyptian company Dolphinus, Delek Drilling said on Monday.

Various possibilities for transmission of the gas to Egypt are being examined, including use of the East Mediterranean Gas pipeline. Delek Drilling and its partner, Texas-based Noble Energy, intend to begin negotiations with EMG for the use of the pipeline to Egypt, Delek said in a statement.

Atwood Advantage Is Too Expensive For Noble Energy. Ensco May Not Like It - SEEKING ALPHA

Drillship Advantage

Jul. 21, 2017 1:46 AM ET

Summary

• On July 18, 2017, the Leviathan partners and Noble Energy decided to terminate a contract with Atwood Advantage and promote a contract with another drilling rig.
• The Atwood Advantage was working for Noble Energy in Israel at $581K/d until August 2017. So, the loss is limited, but it is still a solid negative.
• This new termination is a wake-up call for Ensco and its shareholders. The acquisition of Atwood seems overvalued and unnecessary at the moment, in my opinion.

The Atwood Advantage is a DP3 Drillship, delivered by DSME in 2013, capable of operating at 3,658 meters (12,000 ft.) of water, drilling depths of up to 12,200 m (40,000 ft.) and has accommodations for 200 personnel.

Leviathan off the starting blocks - IN CYPRUS / CYPRUS WEEKLY

March 5, 2017
Charles Ellinas

Phase 1A of the Leviathan gasfield is finally off the starting blocks. Noble Energy and its partners reached FID on 23 February for Phase 1A, which involves the production of 12bcm/yr starting end of 2019. This can only be seen as positive news for the Leviathan partners and the Israeli gas market.

Leviathan was discovered in 2010 and it is estimated to hold 622bcm of recoverable gross natural gas resources. It is owned by Noble Energy with 39.66%, Delek Drilling with 22.67%, Avner with 22.67% and Ratio with 15%.

In the following, I analyse the FID decision, describe the deal and its potential impact on Energean and discuss the implications on East Med gas.

Leviathan partners ratify $3.75-billion gas-development plan - WORLD OIL

FEB/23/2017Yaacov Benmeleh

TEL AVIV (Bloomberg) -- The companies that own the rights to Leviathan, Israel’s largest natural gas reservoir, approved a plan to allocate $3.75 billion to develop the offshore site. Israel’s main gas equity index rose the most in almost five months.

The partners, led by Delek Group Ltd. and Houston-based Noble Energy, have agreed on a final investment decision, which lays out how the companies intend to spend the funds to develop Leviathan over the next three years, according to a Tel Aviv Stock Exchange filing Thursday.

The decision allows the partners to “launch the largest energy project in the history of Israel, that will also serve as one of the region’s energy anchors,” Yossi Abu, chief executive officer of Delek Drilling, said in an e-mailed statement. Delek Drilling holds a 22.7% stake in Leviathan and is a unit of Delek Group. “We will continue our activity to develop and expand our oil and gas assets in Israel and Cyprus,” Abu said.

Partners in Israeli Leviathan gas field okay $3.75 billion investment - REUTERS

Thu Feb 23, 2017 | 2:44am ESTReporting by Tova Cohen

The partners in the Leviathan natural gas field said on Thursday they approved a $3.75 billion final investment decision (FID) in the first phase of the giant reservoir, the largest energy project in Israel's history.

The reservoir, located 100 kilometers (62 miles) west of Haifa, was discovered in December 2010 and is one of the largest offshore natural gas discoveries in the world in the previous decade.

The project's $3.75 billion budget is in addition to $1 billion that has already been invested to date in various exploration, appraisal and planning activities.

According to the development plan that was approved last year by the government, the project will be completed within less than three years and the gas from Leviathan will be available to the Israeli market by the end of 2019.

Leviathan partners raise $1.75b from international lenders - JERUSALEM POST

February 21, 2017 17:30 

Sharon Udasin

The partners signed the financing agreement with a consortium of about 20 international and Israeli lenders, led by J.P. Morgan Limited and HSBC Pank Plc.

In a key step toward furnishing Israel and its neighbors with a robust natural-gas supply, the Leviathan reservoir partners have secured $1.75 billion in loans for the basin’s development.

The partners signed the financing agreement with a consortium of about 20 international and Israeli lenders, led by J.P. Morgan Limited and HSBC Bank PLC, according to a report submitted to the Tel Aviv Stock Exchange on Tuesday morning. The funds are expected to support the A1 development stage of the Leviathan project.

Engagement in a Non-Binding LOI for the Supply of Natural Gas from the Leviathan Project to Edeltech Ltd. - DELEK GROUP

Tel Aviv, January 17, 2017.

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") with regard to an engagement in a non-binding LOI for the supply of natural gas from the Leviathan project to Edeltech Ltd.

Further to the provisions of Section 7.14.1 of the Partnerships’ periodic report as of December 31, 2015, as released on March 28, 2016 (the “Periodic Report”) regarding the conduct of negotiations of the partners in the Leviathan project including the Partnerships (the “Leviathan Partners”) for the marketing of natural gas and condensate to potential offtakers in the domestic economy, the Partnerships hereby respectfully announce as follows:

Leviathan partners sign $2b gas deal - GLOBES

1 Dec, 2016 11:10

Nati Yefet

The latest deal is with Or Energies, which will buy 8.8 billion cubic meters of gas over 20 years.

The Leviathan partners notified the Tel Aviv Stock Exchange this morning that they have signed a $2 billion deal to sell 8.8 billion cubic meters of gas to Or Energies over 20 years. The gas will be used to operate the power station that Or Energy plans to build.

The Leviathan partners Noble Energy Inc.(NYSE: NBL) (39.66%), Delek Group Ltd. (TASE:DLEKG) units Avner Oil and Gas LP (TASE:AVNR.L) and Delek Drilling LP (TASE: DEDR.L) (22.67% each) and Ratio Oil Exploration (1992) LP (TASE:RATI.L) (15%) recently announced that they had signed financing deals for the giant offshore gas field. The partners have also recently signed a range of deals to supply gas including to Paz Oil Company Ltd.(TASE:PZOL), Edeltech, the IPM power station in Beer Tuvia and the Jordanian electyricity company NEPCO.

Leviathan partners sign $2 bln Israeli power plant natgas deal - REUTERS

Thu Dec 1, 2016 | 2:55am EST Reporting by Steven Scheer

The partners in the Leviathan natural gas field off Israel's coast said on Thursday they signed a deal worth about $2 billion to supply gas to Dalia Power Engines.

Under the deal, Dalia -- the largest private power plant in Israel -- will receive 8.8 billion cubic meters of gas for up to 20 years once production starts.

Breakeven Rundown: Mediterranean, GoM Gas Outshine Others - HART ENERGY / STRATAS ADVISORS

Monday, November 28, 2016 - 3:00pm
Velda Addison

When it comes to breakeven prices for development projects targeting natural gas, the ultradeep water of the Mediterranean Sea and the deep U.S. Gulf of Mexico are hard to beat.

This is based on research conducted by Stratas Advisors, which studied the economics of about 150 natural gas assets worldwide.

“Driven by the low-cost Leviathan gas development with high well productivities offshore Israel, the breakeven price of the ultra-deepwater development is only about $1.5/Mcf [thousand cubic feet], much lower than its counterparts in the shallow-water and deepwater developments in Egypt and Libya, where the breakevens are around $4.4/Mcf and $3.8/Mcf,” the research and consulting company said in a report. “The low cost giant gas discovery Zohr, offshore Egypt, drives the average price down in the deepwater segment.”

Israeli Leviathan Partners Get Up to $1.75 Billion HSBC, JPMorgan Financing - HAARETZ / REUTERS

Nov 27, 2016 6:22 PM

Delek Drilling and Avner Oil Exploration said the funds would go towards the A1 development stage of the project.

The main Israeli partners developing the large Leviathan natural gas site said on Sunday they signed commitment letters with HSBC and J.P. Morgan for up to $1.75 billion of financing.

Delek Drilling and Avner Oil Exploration said the funds would go towards the A1 development stage of the project.

Delek and Avner, units of conglomerate Delek Group, hold a combined 45.3 percent of Leviathan. Texas-based Noble Energy owns nearly 40 percent.

Partners in Israel Leviathan Gas Field Clinch $700 Million Deal - BLOOMBERG

November 24, 2016 — 11:02 AM EET Yaacov Benmeleh

The partners owning rights to Leviathan, Israel’s largest natural gas deposit, signed a $700 million contract to supply gas to Paz Oil Co., as arrangements to finance the project are nearing completion.

Paz, the country’s biggest fuel company, will receive about 3.1 billion cubic meters of gas over 15 years, according to a Tel Aviv Stock Exchange filing on Thursday. The deal would be the fourth linked to Leviathan.

Israel minister sees exports to Turkey - NATURAL GAS WORLD

November 22nd, 2016, 1:35pm
Ya'acov Zalel

Israel's energy minister Yuval Steinitz told a conference in Tel Aviv November 21 that the giant Leviathan and two other smaller gas fields offshore Israel, Karish and Tanin, will be developed come what may, and gas would then flow to Turkey.

He told the 2016 Israel Energy and Business Convention in Tel Aviv that there was no question about it. "I know it is sometimes neither simple nor easy. We have done what we had to do, the best I could, and now there is not a situation that timetables would be delayed. It will not happen. It is unthinkable."

The final investment decision (FID) for Leviathan has yet to be taken by the project's partners. Delek is adamant that the FID will be taken by the end of the year while Noble Energy, a 40% shareholder, and the operator, said it could be early next year. Delek Drilling CEO Yossi Abu said at the conference that the Leviathan partners were close to securing $4bn in finance for the field's development. "The Leviathan financing agreements are in the final stages of negotiations," Abu said at the conference. Last month Ratio, a 15% shareholder in Leviathan, had raised about $200mn in bonds in order to finance its equity investment in the project through a mezzanine debt.

Israel gas partners close to $4-billion financing for Leviathan - WORLD OIL / BLOOMBERG

21 November 2016
YAACOV BENMELEH

TEL AVIV (Bloomberg) -- The companies that own the rights to Israel’s largest natural gas pool are close to securing the $4-billion financing needed to develop the field, according to the CEO of one of the partners.

"The Leviathan financing agreements are in the final stages of negotiations," Delek Drilling LP CEO Yossi Abu said in a Tel Aviv conference on Monday, referring to the Israeli gas reservoir.

With a large export contract already in hand, obtaining the funds is the next milestone for the gas explorers looking to tap the Leviathan pool, led by U.S.-based Noble Energy and billionaire Yitzchak Teshuva’s Delek Group Ltd. The partners signed a $10-billion deal with Natural Electric Power Co. of Jordan two months ago.

Discounted Cash Flow Report for the Leviathan Leases - DELEK GROUP

Tel Aviv, November 3, 2016. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that further to section 1.7.5 (I) of the Company's periodic report as at March 31, 2016, as revised and published on May 30, 2016 (Ref. No. 2016-01-037758) (the "Periodic Report") concerning the Leviathan Project resources within the North Leviathan I/14 and South Leviathan I/15 Leases ("the South Leviathan Lease" and " the North Leviathan Lease", respectively) (the South Leviathan and North Leviathan Leases will be referred to below as: "Leviathan Leases" or "Leviathan Reservoir" or "Leviathan Project"), to section 1.7.13 (1)J(3) of the Periodic Report 

with regard to the agreement for the supply of natural gas from the Leviathan Project to Edeltech Ltd., to the Immediate Report issued by the Company on May 29, 2016 (Ref. No. 2016-1-036867) concerning the Leviathan Project partners’ engagement in an agreement for the supply of natural gas from the Leviathan Project to IPM Beer Tuvia Ltd., to the Immediate Report issued by the Company on June 2, 2016 (Ref. No. 2016-1-043794) 

Importing Israeli gas: Jordan’s self-harming energy choice - MIDDLE EAST EYE

'Expedient' regasification ship, anchored off the coast of Israel
on February 26, 2015 to supply Electric Corporation (AFP)

Hisham Bustani
Friday 30 September 2016 09:18 UTC

Pressure from the US and corruption lie behind a $10bn contract that endangers Jordan's energy sovereignty while aiding Israel

Two years after signing a letter of intent to import gas from Israeli-occupied fields in the eastern Mediterranean, the National Electric Power Company of Jordan (NEPCO), a 100 percent government-owned firm that monopolises the generation of electrical power in Jordan, finally signed the actual gas deal this Monday.

According to the terms of this deal, the Israeli consortium led by the US company Noble Energy is to supply a gross quantity of approximately 1.6 trillion cubic feet of natural gas from the yet undeveloped Leviathan field, over a period of 15 years, for the price of $10bn.

Leviathan partnership authorises $120mn FEED - NATURAL GAS EUROPE

June 23rd, 2016

Leviathan partners have approved a $120mn front-end engineering and design contract for the development of the giant gas field offshore Israel. The three partners – Delek Group (45.3%), Noble Energy (39.7%) and Ratio (15%) – authorised Noble Energy, the operator, to start the Feed phase.

In a filing to the Tel Aviv Stock Exchange (TASE) the Israeli partners said that Noble Energy could sign contracts for "a detailed engineering plan" for the project. The engineering work will include the design of the gas treatment and production rig and other activities. The fixed rig will be 10 km off shore and will be connected to a second entry point to Israel in the north of the country.