The Delek Group signed a financing agreement for $1.75 billion with a consortium headed by HSBC Bank Plc. and J.P. Morgan Limited to develop the Leviathan gas field, the group announced on Tuesday.
The financing documents were signed between the Delek Group and a consortium of local and foreign finance providers headed by HSBC Bank Plc. and J.P. Morgan Limited., the statement read.
A limited recourse loan of approx. $875 million each will be provided for the Delek group partners, the statement added.
Having discovered the Tamar and Leviathan assets, the Delek Group, through its subsidiaries Israeli Avner Oil and Delek Drilling, each hold a 22.67 percent stake in the Leviathan Natural Gas field. Other partners in the field include Texas-based Noble Energy with a 39.66 percent share and Ratio Oil Exploration with a 15 percent stake.
The loan will be used for the purpose of financing the group's share of the investment balance to develop the Leviathan project, according to the statement.
The Leviathan field, discovered in 2009, holds an estimated 613 billion cubic meters (bcm) of gas with 39.4 million barrels of condensates. The field is set to begin production in the fourth quarter of 2019.
The first stage of the Leviathan will be developed for the domestic Israeli and Jordanian market with estimated costs of between $3.5 and $4 billion, the group said previously in a statement in December last year.
By Ebru Sengul