Developers of Israel’s Leviathan natural gas field committed on Thursday to investing $3.75 billion in the reservoir, marking a significant blow to efforts to economically attack the Jewish state, an Israeli official told The Jerusalem Post.
The development of the offshore field, which is slated to take three years, is the largest financial investment and energy project in Israeli history. The final investment decision lays out how the companies that own the rights to the field — led by Delek Group and Houston-based Noble Energy — will pay for the first phase of development.
Leviathan was first discovered in 2010 some 100 miles (160 kilometers) west of Haifa. It is expected to yield first oil by the end of 2019, boosting Israel’s domestic gas supplies and serving as an export outlet to nations in the Middle East and Europe.
“In an era of the [Boycott, Divestment, Sanctions] movement, when the Israeli government is going to such efforts to thwart BDS, this is a great victory,” said Eli Groner, an official with the Prime Minister’s Office who participated in negotiations over the commitment.
Groner credited Prime Minister Benjamin Netanyahu and Energy Minister Yuval Steinitz for convincing Noble Energy that Israel is “a place that’s worthwhile to invest in. The next stage is to ensure that many other energy exploratory companies form around the world will invest here.”
Steinitz also celebrated the decision, pointing out that the natural gas field will boost Israel’s economy, provide cleaner air, and give the country a measure of energy security in the near term. “If we continue on a responsible and steadfast path, we will also succeed in discovering more gas fields, positioning Israel as an important player in the energy market alongside our neighbors in the Middle East and Europe,” he added.
Noble Energy owns a 39.66 percent stake in the Leviathan reservoir, while Delek Drilling and Avner Oil Exploration — both subsidiaries of Delek Group — own 22.67 percent each. Ratio Oil Exploration has a 15 percent stake.
In 2013, Netanyahu announced that gas exports could bring Israel’s traditionally resource-poor economy some $60 billion in taxes and royalties over the next 20 years.
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