Israel's Leviathan Signs Preliminary Egypt Natgas Deal
JERUSALEM, Nov 25 (Reuters) – Natural gas from Israel's vast Leviathan offshore gas field will be pumped to Egypt via an existing subsea pipeline for up to 15 years under a preliminary deal announced by the field's developers on Wednesday.
Leviathan, which is expected to begin production in 2019 or 2020, will supply Egypt's Dolphinus Holdings with up to 4 billion cubic metres (bcm) of gas per year for 10 to 15 years, the companies said in a statement to the Tel Aviv Stock Exchange.
Signing a letter of intent, the two sides agreed to negotiate terms for a final deal.
The price of gas is similar to other contracts and is linked to the cost of Brent oil and includes a floor price, they said.
"We've worked with Dolphinus before and we expect to reach a final agreement quickly," Yossi Abu, chief executive of Israel's Delek Drilling, told Reuters.
Development of Leviathan, which holds an estimated 622 bcm of gas, is being led by Texas-based Noble Energy and Delek Group through its units Delek Drilling and Avner Oil and Gas.
Shares in the Dalek companies were up by 2 to 4 percent in early trade on Wednesday.
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Noble Energy Gives In to Permian and Transport Challenges, Shares Fall (Aug 03)
- Israel, Egypt Gas Partners Near Deal to Control EMG Pipeline (Jun 14)
- Noble Energy's Sales Volume Forecast Disappoints, Shares Slide (May 01)
Company: Delek Energy more info
- Delek Said to Start Roadshow for $1.1 Billion Gas IPO Next Week (Jun 22)
- EnQuest in Talks to Sell 20% Stake in Kraken Oilfield to Israel's Delek (Jul 18)
- Leviathan Partners Raise Annual Natgas Production Forecast (Feb 25)