Natural gas production from Leviathan field in the Eastern Mediterranean has begun, Noble Energy Inc., Houston, reported Dec. 31. Leviathan natural gas exports to neighboring countries is expected to begin in the coming weeks, partner Delek Drilling reported.
“First gas is online less than three years from project sanction and capital expenditures were $150 million under budget. Combined with Tamar, our Israel assets provide a differential production profile and cash flow outlook for Noble Energy far into the future,” said David L. Stover, Noble Energy’s chairman and chief executive officer in a press statement.
The delivery of Leviathan gas will effectively double the amount of Israeli-produced gas when added to the quantities supplied from the Tamar reservoir, Delek Drilling said in a press statement.
Discovered in 2010 in 5,500 ft of water some 80 miles offshore, the field is estimated to have recoverable resources of 22 tcf of natural gas from 35 tcf of in-place resource. The first phase of development consists of four production wells at an average depth of 5 km below sea level producing through two 18-in., 73-mile subsea tiebacks to a processing platform offshore northern Israel. Each well has a production capacity of 300 MMcfd . The first phase development has a designed production capacity of up to 1.2 bcfd.
Investment in the project's first phase is $3.6 billion dollars–$150 million less than projected in the project’s original budget.
Noble Energy holds 39.66% working interest in the project. Partners are Delek Drilling LP with 45.34% and Ratio Oil Exploration LP with 15%.
