Gas would start flowing from the Mediterranean offshore field in 2020
The Leviathan partners – Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L), and Ratio Oil Exploration (1992) LP (TASE:RATI.L) today notified the Tel Aviv Stock Exchange (TASE) that gas would start flowing from the Mediterranean offshore field in 2020.
The update on the gas field and the expected cash flow reiterated that the estimated reserves in the reservoir are about 21.8 trillion cubic feet (TCF). In the first stage the partners expect 12 billion cubic meters (BCM) to flow annually to Israel and Jordan. The Leviathan partners expect to start paying the government royalties in 2025, as stipulated in the Sheshinski report.
Despite the potential complications in the delay in the start of gas production, the share prices of Delek and its units and Ratio rose after the report was published.
Source: Globes
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