• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 8 minutes The Inconvenient Truth Of Electric Cars
  • 12 minutes The Plastics Problem
  • 6 hours SHALE MAGIC: Let the oil flow: US to lead oil output growth through 2030: ConocoPhillips chief economist
  • 6 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 11 hours IMO 2020
  • 42 mins Climate change & Wildfires: More Wildfires To The Western U.S., Will Affect Tens Of Millions Of People
  • 11 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 9 hours To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 12 hours Its called reality: Economic, policy challenges to make Asia's energy transition painfully slow
  • 49 mins Democrats Green Beauty Pageant
  • 12 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 13 hours EIA reports 12 mm bbls U.S. Inventory draw . . . . NO BIG DEAL . . . because U.S. EXPORTED RECORD 12 MILLION BARRELS DAY OF CRUDE + PETROLEUM PRODUCTS ! ! ! THAT'S HUGE !
  • 8 hours On the hobby side of things
  • 12 hours Oil Demand Needs to Halve: Equinor
Oil’s Biggest Fear

Oil’s Biggest Fear

Oil prices rose this week,…

Oilfield Services Are Flexing Their Muscles

Oilfield Services Are Flexing Their Muscles

Oilfield service companies are beginning…

Major Deal Turns Israel Into Jordan’s Leading Gas Supplier

Leviathan natgas

A deal between the operators of the Leviathan oil and gas field off the Israeli coast and Jordan Electric Power Company has just turned Israel into Jordan’s biggest gas supplier. The 15-year, US$10-billion contract was signed with a consortium, which includes local industrial major Delek Group and U.S. Noble Energy. Jordan will receive 45 billion cubic meters of gas under the deal.

Israeli government officials and Delek representatives praised the deal as “historic”, marking an important milestone in the development of the Leviathan field, where full-scale production is scheduled to begin in 2019. The field is estimated to hold some 19 trillion cubic feet of natural gas and 34.1 million barrels of condensate.

Indeed, the news is of the groundbreaking sort, as the development of Israel’s largest gas field has been delayed for years because of regulatory hurdles brought on by political disputes and legal issues. The chief point of contention politically was the possibility that the Delek-Noble Energy partnership would become a monopoly on the Israeli gas market, which would end in higher gas prices for local consumers. Another obstacle was the lack of a government policy regarding the development of Israel’s gas reserves.

The operator of the field, Noble Energy with a 40-percent stake, was finally given the green light to start development works this June. Delek holds 45 percent in the field.

The exploitation of Leviathan could turn Israel into a regional energy leader, even though the state has no onshore oil and gas reserves. Some of its offshore reserves have also been disputed by neighbor Lebanon, with which Tel Aviv has no diplomatic relations but has been embroiled in a dispute with regarding the maritime border between the two countries and allegations from Beirut that Israel is siphoning its hydrocarbon riches.

The Leviathan field is, thankfully for Israel, not a subject of territorial disputes. Gas extracted from it could also flow to Turkey, Egypt, and the Palestinian Authority, according to Delek Drilling’ s chief executive Yossi Abu.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News