Leviathan gas field

Energy cooperation has been a major force driving Turkish-Israeli reconciliation.

Israel's Leviathan gas field, the country's largest natural gas reservoir, was discovered in 2010 and is believed to hold 621 billion cubic meters of gas.

If a deal is concluded, an estimated 10 billion cubic meters of gas will be exported to Turkey each year.

The Israeli partners in the Leviathan gas field said on Dec. 12 they approved a development plan for the field with a target production date for the end of 2019.

The plan, the group said in a statement to the Tel Aviv Stock Exchange, includes a first stage development for production of about 12 billion cubic meters (bcm) a year at a cost of $3.5-4 billion.

A minimum of three years is needed to ship gas to global markets via Turkey from the Aphrodite Gas field in Greek Cyprus and the Leviathan field in Israel, the general manager of the Turkish Zorlu Energy Natural Gas Group said Nov 30.

The main Israeli partners developing the large Leviathan natural gas site said on Nov. 27 they signed commitment letters with HSBC and J.P. Morgan for up to $1.75 billion (1.65 billion pounds) of financing.

Delek Drilling and Avner Oil Exploration said the funds would go towards the A1 development stage of the project.

Israel has invited bids for 24 new offshore oil-and-gas exploration licenses it hopes will bring more major finds in the Mediterranean as it strives to become an energy exporter. "We are offering for exploration half of our economic waters in 24 blocks," Energy Minister Yuval Steinitz said, announcing the offer which closes on April 21.

The only route big enough for Israel's gas exportation is a country like Turkey which is capable of providing infrastructure and further exportation to the West, Shai Cohen, the Consul-General of Israel in Istanbul has said.        

Noble Energy warned of the risk of a delay to the development of the Leviathan natural gas field off Israel's coast after Israel's Supreme Court blocked a crucial provision of a plan to develop the site.

Greek Cyprus has launched a third licensing round for offshore oil and gas drilling off the Mediterranean island's southern coast.

"The decision to launch this licensing round was based on the huge interest by international companies to carry out explorations offshore Cyprus despite the energy industry's not so favorable conditions," said government spokesman Nicos Christodoulides.

Israel is looking to exploit its substantial natural gas reserves with two potential pipeline projects to Turkey and Greece, its Energy Minister Yuval Steinitz announced Feb. 7.

Partners in Israel's Leviathan natural gas field could reach a final investment decision by the end of 2016 if government and regulatory approvals are granted as hoped, an official of the companies involved said.

That would enable the first gas from the field to reach markets by the last quarter of 2019, Bini Zomer, the Israel country manager for Noble Energy, said on Jan. 31.