MEOG: Leviathan Phase 1B FID expected

The partners in Israel’s Leviathan gas field are expected to take the decision to invest $400mn-500mn in the front-end engineering design (FEED) of the asset’s Phase 1B expansion project.

This decision follows the preliminary approval by Israel’s Ministry of Energy to increase natural gas exports while also boosting domestic supply. The export volume could be raised by an additional 118bn cubic metres, potentially reaching up to 145 bcm upon meeting certain conditions.

According to the field’s majority shareholder NewMed Energy, this, alongside the government resolutions adopted on the issue, constitutes a basis for the promotion of Phase 1B of Leviathan.

NewMed, formerly Delek Drilling, holds a stake of 45.3% and is partnered by operator Chevron Corp. (39.66%) and the local Ratio Oil Corp. (15%).

Phase 1B aims to boost gas production and supply to 21 bcm per year, catering both to domestic demand and providing the basis for an increase in exports.

In a press release, NewMed CEO Yossi Abu said: “The Leviathan expansion is taking shape. The Leviathan reservoir is an energy hub containing a vast amount of resources, ensuring energy security for Israel, alongside exports to the regional market and, in the foreseeable future, also to the global market.”