A new appraisal well to be drilled in Leviathan

The Israeli partners in Leviathan, Delek Drilling, Avner and Ratio, said in a December 18 filing to the Tel Aviv Stock Exchange that they will start drilling the Leviathan-5 well in the first quarter of 2017. The decision was taken on the recommendation of Noble Energy, the biggest shareholder in the gas field and the operator.

The drill will be for the purpose of further assessing the field's gas quantities. According to the Leviathan's partners the field holds 620bn m³ but, according to an assessment presented to the energy ministry, it contains only 500 bn m³. The well will have the potential to become a production well when the field is developed for production, according to the filing. The partners are expected to take the final investment decision this year or early next year.

The planned drill will be done by the Atwood Advantage, an ultra-deepwater, dynamically positioned drillship. Currently that drillship drills in the Tamar gas field. The total budget for Leviathan-5 drilling is estimated at $77mn.

The filing came just three days before Delek Drilling and Avner are expected to raise NIS 1.5bn ($390mn) in bonds in the Israeli financial market.

Ya'acov Zalel