Israel's Leviathan and Tamar gas to be sold into Egypt

Noble Energy and Delek Drilling announced plans in February to export gas to Egypt. The plan is to supply 64bcm over a 10 year period to Egypt’s Dolphinus Holdings – 32bcm from Leviathan and 32bcm from Tamar.

Each field is contracted up to 3.5bcm p.a. or c.350mmcfpd and will bring the partners USD15 billion over the life of the supply contract. The contracted price and terms are in line with other supply contracts from these fields which is based on a Brent linked formula.

Source: Delek Drilling, February 2018

Leviathan is owned by Delek Drilling (45.34%), Noble Energy (39.66% operator), Ratio Oil Exploration (15%). The field is on track to target first gas by end 2019 and with the extra 350mmcfpd to Dolphinus brings contracted sales close to 900mmcfpd, just below the 1bcfpd target. The first phase of the field is planned to deliver 1.2bcfpd from four wells.

Source: Noble Energy, November 2017 with 525mmcfpd firm GSPAs at the time

Tamar is owned by Isramco Negev (28.75%), Noble Energy (25% operator), Delek Drilling (22%), Tamar Petroleum (16.75%), Dor Gas (4%) and Everest Infrastructures (3.5%) – this reflects the ownership post the recent sale of 7.5% by Noble Energy to Tamar Petroleum as reported previously (Tamar Petroleum to raise bonds to finance acquisition of Tamar from Noble and Israel capital cycle: Noble sells down Tamar to fund Leviathan).

The export route for the gas to Egypt is still to be decided but could utilise existing infrastructure or a new pipeline. At the end of February Noble Energy, Delek Drilling and Dolphinus were reported to be considering acquiring the Arish-Ashkelon pipeline owned by the East Mediterranean Gas company (otherwise known as the EMG pipeline).

Source: Delek Drilling, February 2018