Leviathan

Location and Geology

The Leviathan gas field is situated in the Levantine Basin of the Mediterranean Sea, approximately 125 kilometers west of Haifa, Israel, and 35 kilometers west of the Tamar field. The field is spread over an area of about 330 square kilometers and is located in water depths ranging from 1,540 to 1,800 meters.

Ownership and Operation

The Leviathan gas field is jointly owned by:

• Chevron Mediterranean Limited (formerly Noble Energy) with a 39.66% working interest.
• NewMed Energy with a 45.34% working interest.
• Ratio Energies with a 15% working interest. Chevron became the operator of the field following its acquisition of Noble Energy in June 2020.

Discovery and Exploration

The Leviathan field was discovered in December 2010 by Noble Energy and its partners, Delek Drilling and Ratio Oil Exploration. The discovery was made through several wells, including the Leviathan-1, Leviathan-2, and Leviathan-3 wells. Drilling operations encountered significant natural gas pay in several sub-salt Miocene intervals.

Development Phases

The development of the Leviathan field is being carried out in two phases:

Phase 1A

• This phase involves four subsea production wells drilled to an average depth of over 5 kilometers below sea level.
• The wells are connected to a subsea manifold and then to an offshore production platform via two 120-kilometer subsea pipelines.
• Each well has a production capacity of more than 300 million cubic feet per day (mcf/d).
• The production platform is located about 10 kilometers from the Israeli coast in 86 meters of water depth.
• The platform includes a domestic supply module, a liquid storage module, a monoethylene glycol reclamation unit, and living quarters.
• The processed gas is sent to the Israel Natural Gas Lines (INGL) national gas transmission system.

Phase 1B

• This phase aims to increase the gas production capacity from 12 billion cubic meters per year (bcm/y) to 21 bcm/y.
• It includes three additional wells, related subsea systems, and a regional export module to be installed on the platform.
• The module will enable gas to be transported to a floating liquefied natural gas facility or a regional export pipeline.
• The project partners assigned a budget of $96.4 million for the preliminary front-end engineering and design (pre-FEED) in February 2023.

Infrastructure and Facilities

• Production Platform: The Leviathan Production Platform (LPP) is a fixed steel jacket platform, 98 meters tall and weighing 15,500 metric tons. It supports a 47-meter high topsides with a total weight of 30,000 metric tons. The platform includes various modules such as a domestic supply module, a liquids supply module, a monoethylene glycol reclamation unit, living quarters, and a flare boom.
• Pipelines: The gas flows from the wells to the platform through dual 18-inch flowlines. From the platform, the processed gas is transferred to the INGL onshore grid via a 32-inch diameter subsea pipeline.
• Onshore Facilities: The project includes onshore components such as the Dor Valve Station (DVS), coastal valve stations, and planned onshore condensate pipelines to Haifa Refineries.

Production and Export

• The initial production capacity of the Leviathan field is 12 bcm/y (1.2 billion cubic feet per day), which more than doubles the production capacity connected to the Israeli grid.
• The field supplies gas to meet Israel’s growing domestic demand and enables exports to neighboring countries and global markets.
• Off-take agreements have been signed with Egypt and Jordan. Israel’s Ministry of Energy authorized the export of natural gas to Egypt, with 60 bcm and 25 bcm of gas to be exported from Leviathan and Tamar fields, respectively, over a period of 15 years starting from January 2020. An agreement with Jordan’s National Electric Power Company (NEPCO) involves the sale of 45 bcm of gas over 15 years.

Environmental and Social Impact

• The project aligns with the Israeli Ministry of Energy’s vision to replace coal as an electricity-generating fuel by 2025, contributing to cleaner air and reduced environmental impact.
• Environmental Impact Assessments (EIAs) were conducted to cover the proposed LPP location, onshore tie-in of the domestic export pipeline, and offshore activities. These assessments were performed in consultation with the Government of Israel and adhered to various environmental and social guidelines.

Contractors and Financing

• Key contractors involved include John Wood Group for FEED and detailed engineering services, Ensco for drilling services, Heerema Marine Contractors for installation works, and Trendsetter Engineering for subsea production equipment.
• The project partners made the final investment decision in February 2017, with an estimated investment of $3.75 billion for Phase 1A. Additional financing included a $1.75 billion loan from HSBC Bank and JP Morgan to Delek Group.

Economic and National Impact

• The Leviathan project is the largest energy project in Israeli history, employing over 7,000 workers from 25 different countries during its construction.
• The project has transformed Israel into a significant natural gas exporter, contributing to the country’s energy security and economic growth.