Delek Drilling, a unit of the Delek Group, said that Leviathan gas field partners have signed deals with Exmar and Golar LNG to explore the potential of developing a floating LNG facility.
Deal with Golar LNG has been signed for the purpose of performing an assessment of the compatibility of the generic front end engineering and design (FEED) carried out by them to the construction of an FLNG facility for the Leviathan project in the EEZ of Israel, and for detailed engineering planning of the facility, Delek Drilling said.
A similar deal was signed with Belgium’s Exmar that would also perform a dedicated FEED for the Leviathan project and detailed engineering planning for the construction of the floating LNG facility.
In this context, the Leviathan partners will negotiate with the two providers for the commercial terms and conditions for the construction of the facility, with an estimated capacity between 2.5 and 5 million tons of LNG per year (approx. 3.5-7 BCM), and operation thereof, including for promotion of receipt of the necessary regulatory approvals.
Insofar as it is found that construction of the Facility is the preferred alternative for advancing future development stages of the Leviathan project, the Leviathan partners will engage with one of the providers in a long-term agreement for the charter of the Facility to be built, financed, operated and maintained thereby.