Bank Leumi (TASE: LUMI) believes that it is possible to develop the Leviathan natural gas field without Woodside Petroleum Ltd. (ASX: WPL).
"We are changing our assessment about the ability of Leviathan's current partners to develop the field on their own. Consequently, we believe that the solution to diversify exports via a pipeline to countries in the region, including Turkey, and a FLNG (floating liquefied natural gas) platform could shorten the project's timetable," said Bank Leumi analyst Ella Fried today, following a meeting with the management of Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L), the energy exploration units of Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva.
"As a result of the conversation with the management we conclude that in the new geopolitical situation, and given the success in completing the Tamar project, there is a real chance that the Leviathan partners can develop it independently," says Fried, adding, "Despite the clear advantages of bringing in an strong international partner in the field, if the negotiations fail, there are practical alternatives that have their own advantages."
Fried says, "In our opinion, the best alternative, economically, about which we have written more than once, is the diversification of exports through a pipeline to countries in the region, including Turkey, a FLNG platform, and/or a pipeline from Leviathan to an LNG plant in Cyprus."
Published by Globes [online], Israel business news - www.globes-online.com - on December 11, 2013
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