Ratio CEO: Leviathan development will cost $15b

Yigal Landau said that without regulatory stability, it won't be possible to bring in a strategic partner.

"Development of Leviathan will require an investment of more than $15 billion. This is a project that the People of Israel have never experienced. Without regulatory stability, it will not be possible to move forward on this project and bring in a strategic partner," said Ratio Oil Exploration (1992) LP (TASE:RATI.L) CEO Yigal Landau at the 2012 Energy Conference.

Noble Energy Inc. (NYSE: NBL) owns 39.66% of Leviathan, Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 22.67% and Ratio owns 15%.

Avner CEO Gideon Tadmor said, "It is impossible to talk about a northern gas terminal if there is no project to supply the gas; in other words, Leviathan. It is impossible to talk about developing the Leviathan field without an export horizon. The key is the Tzemach Committee recommendations. I am sure that the government and the prime minister will approve these recommendations as quickly as possible, and there will be no delay, heaven forbid, because the approval is a milestone."

As for construction of a liquefied natural gas (LNG) facility, Tadmor said, "The window of opportunity for gas exports will not stay open forever. This is a dynamic market. Cyprus discovered gas just one year ago, and there is already a site for an LNG facility, and there is a vision. The question is how will Israel, which was the first to discover gas, avoid lagging behind."

Commenting on the dry holes at the Myra and Sarah offshore wells in the past month, Noble Energy Mediterranean VP Lawson Freeman, "There have recently been several wells which failed, and that happens. As an amateur football player, I can quote a coach, who once said, 'When you win, you're not as good as you think you are, and when you lose, you're not as bad as you think you are."

Published by Globes [online], Israel business news - www.globes-online.com - on October 28, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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