Israel's Leviathan gas group seeks partners to expand

EXMAR NV

12/02/2020 09:04

* Talking to Bermuda-based Golar LNG, Belgium's Exmar 
    * Exports began in January, seeking to expand production
    * Deep oil a more distant and risky prospect

    By Ari Rabinovitch and Tova Cohen
    TEL AVIV, Feb 12 (Reuters) - The energy companies that own
Israel's offshore Leviathan gas field are seeking partners to
build a floating liquefied natural gas (FLNG) platform and
possibly to explore for oil in ultra-deep water, a CEO from the
group said.
    Leviathan, one of the world's biggest offshore gas
discoveries of the last decade, has turned Israel into an energy
exporter in a tumultuous region and has weaned it off more
polluting imports, notably coal.
    It began exporting in January and is already supplying
Israel, Egypt and Jordan with natural gas. 
    The group wants to expand production and aims to make an
investment decision this year on the way forward.  urn:newsml:reuters.com:*:nL8N2950LE
    Central to progress will be a multi-billion dollar FLNG
terminal that would float in the eastern Mediterranean and allow
exports to Europe, Yigal Landau, CEO of Ratio Oil  RATIp.TA , a
minority partner in Leviathan, told Reuters.
    "FLNG has an advantage in that you are not dependent on
geopolitics," he said. "It gives export independence."
    Pipelines that connect to LNG plants in northern Egypt or to
Europe directly are additional options.
    Ratio, along with partners Delek Drilling  DEDRp.TA  and
Noble Energy  NBL.O , are already talking with Bermuda-based
Golar LNG  GLNG.O  and Belgium's Exmar  EXMR.BR  to invest in
and build the floating terminal.
    "Whoever is the best, cheapest and most fitting for us will
be chosen. Then one of them will become a strategic partner in
the project itself," Landau said.
    He estimated the FLNG terminal could be operating in three
years. Adjustments to the current production platform alone
would require $1 billion, he said, in addition to the cost of
constructing the terminal and drilling wells.
    Before being able to invest, the partners would need to
secure firm contracts with customers.
    The Leviathan field is located about 120 km (75 miles) off
Israel's coast in water deeper than 1.5 km. The group believes
oil may be hidden beneath the gas.
    It's a risky and costly venture, especially as the
investment climate in the developed world is shifting away from
climate-warming fossil fuel. But depending on further seismic
analysis and the right market conditions, Landau said they would
like to bring in an oil major to tap any reserves.
    "We will feel more comfortable with a strategic partner that
has the know-how and experience," he said.
    In October, Ratio won eight licences to explore in Israeli
waters. 
    Its sister company Ratio Petroleum  RTPTp.TA  is exploring
for oil, together with ExxonMobil Corp  XOM.N , off Guyana's
coast and in Suriname with Tullow Oil  TLW.L  and Pluspetrol
 PLUSPC.UL .

 (Reporting by Ari Rabinovitch and Tova Cohen; Editing by
Barbara Lewis)
 ((ari.rabinovitch@thomsonreuters.com;  +972-2-632-2202; Reuters
Messaging: ari.rabinovitch@thomsonreuters.com@reuters.net))