• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 23 hours Could Venezuela become a net oil importer?
  • 17 mins Oil prices going Up? NO!
  • 2 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 1 day Tesla Closing a Dozen Solar Facilities in Nine States
  • 2 mins Could oil demand collapse rapidly? Yup, sure could.
  • 23 hours Gazprom Exports to EU Hit Record
  • 1 day EU Leaders Set To Prolong Russia Sanctions Again
  • 1 day Why is permian oil "locked in" when refineries abound?
  • 23 hours Oil Buyers Club
  • 17 hours Oil prices going down
  • 6 mins Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 1 day EVs Could Help Coal Demand
  • 1 day China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 1 day Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 15 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 10 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
Permian Discount Could Rise To $20 Per Barrel

Permian Discount Could Rise To $20 Per Barrel

Midstream constraints plaguing Permian drillers…

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