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American firm to invest $550 million in Israeli gas field

Noble Energy will invest in Israel’s offshore Leviathan gas field,  the largest discovered natural gas repository of this century.  

The American production company Noble Energy is expected to announce in the coming days an investment of $550 million in the development of Israel’s Leviathan gas field, according to a company outlook and guidance report for 2017 published Monday.

The $550 million represents one-fifth of the company’s global investments of $2.3 billion to $2.6 billion for 2017.

Noble Energy President and CEO David Stover said in the guidance report, “We have a tremendous opportunity with the Leviathan project offshore Israel. In 2017, our teams will begin project development, with first gas targeted for the end of 2019. I have no doubt that our outstanding track record of major project execution will again deliver substantial value to the company.”

The report also said, “Capital expenditures in the Eastern Mediterranean for the initial development of the Leviathan project include drilling one production well, long-lead investment items, and ramp up of construction activities. The company will also complete an additional production well at Tamar [gas field], which was drilled in the fourth quarter of 2016.”

Israel – an Emerging Energy Empire

Israel is currently engaged in discussions with Turkey, Cyprus, Greece and Italy over the possibility of exporting its natural gas via underwater pipelines.

Israel’s economy has received a significant boost by its gas findings, and the Israeli central bank reported that natural gas added approximately 0.3% to the GDP over the course of 2014.

The gas fields are not only economically important to Israel, but politically as well.

In 2013, the Israeli government decided that the country should export 40% of its gas production and invest the profits in economic development.

Some thirty-five-trillion cubic feet of gas have been found in Israeli waters, worth some $500 billion. This crucial discovery enables Israel to become energy independent for the first time in history and has also turned Israel into a major player in the international energy-exporting market. One cannot overstate how important the discovery of natural gas in the Mediterranean has been for Israel. The Leviathan gas field is the largest discovered natural gas repository of this century.

Israel has already signed contracts with Jordan and Egypt.

By: JNS.org and World Israel News Staff