Leviathan worth 12.5 billion dollars.
thanks to the promotion of the third pipeline project (photo: screenshot, Albatross)
A short time ago, the NewMed Energy partnership published a reserves report, contingent resources and updated capitalized flow (DCF) data for the Leviathan reservoir.
The report was compiled by leading resource assessment firm Netherland Sewell and Associates, Inc (NSAI).
The resource flow of Leviathan reserves includes for the first time the third pipeline project promoted these days by Leviathan's partners, the main of which is the laying of an additional transmission pipeline from the field to the platform, as well as investments in ancillary systems on the platform itself.
In light of the progress in the project, NSAI has classified a significant portion of the contingent resources as reserves.
The third pipeline project brings considerable value to the reservoir - the value of the reservoir has increased, and is now estimated at approximately 12.5 billion dollars, an increase of approximately 10% compared to the estimate in the previous report.
According to the discounted flows data as of 12.31.2022, the value of the partnership's share in the Leviathan reservoir in relation to reserves and contingent resources of type P+2C2, increased by about 9.4%, to about 5.1 billion dollars, and in relation to reserves of type 2P increased by about 11.5% to about 4.9 billion dollars, at a discount rate of 10%, and this in relation to the previous capitalization flow.
The third pipeline project enables an increase in the maximum gas supply capacity from the Leviathan project, which currently stands at approximately 1.2 BCF per day (12 BCM per year), to approximately 1.4 BCF per day (14 BCM per year).
The project is expected to be completed in 2025. The project budget is estimated at approximately $562 million (100%), with Leviathan's partners having approved approximately $208 million (100%) to date.
According to NewMed Energy, an investment decision (FID) on the subject is expected to be made in the next quarter.
Yossi Abu, CEO of NewMed Energy (Photo: Inbal Marmari)
The report also shows that during the year 2022, a total amount of 11.4 BCM was sold from Whale. This is an increase of about 1.3% compared to the forecast published by NewMed Energy in September 2022, which was about 11.25 BCM, and an increase of about 7% compared to the forecast published by the partnership at the beginning Year 2022 Total sales from Leviathan for the year 2022 were approximately $2.5 billion and NewMed Energy's share was estimated at approximately $1.14 billion. The
report raises the sales forecast from Leviathan for the coming years, among other things based on the production capacity of the Leviathan reservoir in phase 1A only , including its increase through the third pipeline project, the actual volume of exports to Egypt and Jordan and the expected continuation of sales to the export markets and the demand forecasts for natural gas in the local market (according to the forecast provided by the BDO company).
Yossi Abu, CEO of NewMed Energy
: "Promoting the third pipeline project is actually a first step on the way to expanding Leviathan. Increasing production quantities from Leviathan will allow us to supply more natural gas to the Israeli economy, along with responding to the rising demand in the export markets."
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Whale reservoir
Leviathan reservoir
Yossi Abu
Natural gas