The Leviathan Agreement
The Leviathan Agreement: A Comprehensive Guide
The Leviathan Agreement is a term that has gained popularity in the oil and gas industry in recent years. This agreement is a joint venture between the Israeli companies Delek Drilling and Noble Energy, and is referred to as the Leviathan gas field. The Leviathan Agreement is a comprehensive agreement that outlines the terms and conditions for the exploitation of the newly discovered gas field off the coast of Israel. In this article, we will take a closer look at the Leviathan Agreement and its significance.
History of the Leviathan Gas Field
The Leviathan Gas Field is one of the largest natural gas discoveries in the world in the past decade. The discovery was made in 2010 off the coast of Israel by Noble Energy. The gas field is estimated to hold over 22 trillion cubic feet of natural gas. The discovery was a significant milestone for Israel, which previously had to rely on imports to meet its energy needs. The development of the Leviathan Gas Field created an opportunity for Israel to become a major player in the global energy market.
The Leviathan Agreement and its Terms
The Leviathan Agreement outlines the terms and conditions of the joint venture between Delek Drilling and Noble Energy for the exploitation of the Leviathan Gas Field. The agreement covers a range of issues, including the development, production, and sale of natural gas from the field. Here are some of the key terms of the Leviathan Agreement:
1. Ownership: Under the Leviathan Agreement, Delek Drilling and Noble Energy own the rights to the gas field. Delek Drilling holds a 45% stake in the joint venture, while Noble Energy holds a 40% stake. The remaining 15% stake is held by a subsidiary of Israel’s Ratio Oil Exploration.
2. Development: The Leviathan Agreement outlines the development of the gas field, which includes drilling wells, constructing production facilities, and building pipelines to bring the gas ashore.
3. Production: The agreement specifies the annual production of gas from the field. The joint venture is expected to produce 12 billion cubic meters of natural gas annually.
4. Sales: The Leviathan Agreement outlines the sale of natural gas from the field. The gas will be sold to customers in Israel and neighboring countries, including Jordan and Egypt. The agreement also includes provisions for the sale of gas to other countries in the future.
5. Revenue Sharing: The Leviathan Agreement includes provisions for the sharing of revenue among the joint venture partners. The revenue sharing arrangement is based on the ownership stake of each partner.
Significance of the Leviathan Agreement
The Leviathan Agreement is significant for several reasons. First, it represents a major milestone for Israel, which previously had to rely on imports to meet its energy needs. The development of the Leviathan Gas Field will allow Israel to become a major exporter of natural gas, which will boost its economy and improve its energy security.
Second, the Leviathan Agreement is significant for the global energy market. The discovery of the Leviathan Gas Field has increased the global supply of natural gas, which has put downward pressure on prices. This has benefited consumers around the world, particularly in Europe, which has become increasingly dependent on natural gas imports.
Lastly, the Leviathan Agreement is significant for the oil and gas industry. The joint venture between Delek Drilling and Noble Energy has created a model for future partnerships between companies in the industry. The success of the Leviathan Agreement could encourage other companies to collaborate on major projects, which could lead to more significant discoveries and the development of new sources of energy.
Conclusion
The Leviathan Agreement represents a major milestone for the oil and gas industry, as well as for Israel and the global energy market. The joint venture between Delek Drilling and Noble Energy has created a model for future partnerships, which could lead to more significant discoveries and the development of new sources of energy. The success of the Leviathan Gas Field will benefit consumers around the world and boost the economy of Israel. As the Leviathan Agreement continues to be implemented, it will be interesting to see how it will impact the energy landscape in the coming years.