NewMed Vitality LP mentioned Wednesday it has secured new borrowings of as much as $400 million from Israeli banks for use for ongoing operations together with an growth challenge within the Chevron Corp.-operated Leviathan fuel and condensate area.
The one-year credit score services, which expire October 2025 and mature October 2027, enable Leviathan majority-owner NewMed Vitality to attract down as much as $200 million from every of the 2 unnamed lenders.
“The brand new credit score services are supposed for use by the Partnership [NewMed Energy] in its ongoing operations, together with in reference to Section 1B of the Leviathan reservoir growth plan”, the Delek Group-owned fuel and condensate exploration and manufacturing firm mentioned in a regulatory disclosure.
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Section 1B goals to lift the offshore area’s annual manufacturing to as much as 742 billion cubic ft (Bcf) a 12 months and increase its export market past the Center East to Europe and Asia.
Leviathan, found 2010 off the coast of Haifa metropolis, began manufacturing December 2019 below Section 1A, which may produce as much as about 424 Bcf yearly. Leviathan “since has develop into a cornerstone of fuel provide in Israel, Egypt and Jordan”, NewMed Vitality says on its web site.
Below the brand new loans, NewMed Vitality might promote holding rights within the challenge. “Within the Credit score Services paperwork, provisions are stipulated in reference to the sale of the Partnership’s holding within the Leviathan challenge, together with the endeavor of the Partnership to scale back the whole Credit score Services, first by way of cancellation of an unused credit score facility (if such exists) and afterwards by way of prepayment”, the submitting acknowledged.
The phrases additionally limit the issuance of recent short-term bonds. “Insofar because the Partnership will challenge new short-term bonds in an quantity which exceeds $200 million, with a maturity date for an quantity exceeding $200 million out of which being earlier than 30 June 2027, the Partnership shall cut back the whole Credit score Services, such that after the discount, the sum of every of the Credit score Services shall not exceed $100 million”, NewMed Vitality mentioned.
Earlier NewMed Vitality mentioned the Leviathan consortium has suspended development of a 3rd pipeline that can serve Leviathan amid the deepening conflict within the Center East.
“As a result of escalation of the safety state of affairs, the work on laying the subsea pipeline as a part of the Third Gathering Pipeline Undertaking has been suspended till April 2025 or thereabouts, relying on the performing contractor’s time tables and work schedule, and on the regional safety state of affairs”, NewMed Vitality mentioned in a regulatory submitting October 6.
NewMed Vitality expects the delay of the pipeline challenge, which is able to develop the fuel provide capability from Leviathan to Israel’s fuel grid to about 1.4 billion cubic ft a day (Bcfd), to final about six months.
“Additional to the most recent developments within the safety state of affairs and relying on, inter alia, operational and technical concerns, the Operator, sometimes, halts manufacturing from the Leviathan reservoir for sure durations of time, in accordance with the platform’s working directions and security procedures”, NewMed Vitality informed the Israel Securities Authority and the Tel Aviv Inventory Change. “As of the date of this report, the combination hurt from the mentioned manufacturing halts has not been materials relative to the annual manufacturing quantity”.
Final 12 months, NewMed Vitality introduced that the Leviathan consortium agreed to take a position round $568 million to develop the third pipeline.
NewMed Vitality owns 45.34 % of the 127.4-square mile Leviathan reservoir, which it says is the most important within the Mediterranean. Chevron Mediterranean Ltd., which entered the Leviathan consortium following a merger that gave the US power large full possession of Noble Vitality Mediterranean Ltd. in 2020, owns 39.66 %. Ratio Energies LP, additionally an Israeli firm, holds the remaining 15 %.
The brand new conduit will develop the utmost provide delivered to Israel Pure Gasoline Traces Ltd. from about 1.2 Bcfd to about 1.4 Bcfd from mid-2025, NewMed Vitality mentioned in a submitting July 2, 2023.
Leviathan has two working pipelines stretching a complete of 74.56 miles by way of which output from the challenge’s 4 subsea wells is carried to an offshore platform that processes the fuel.
To contact the writer, electronic mail jov.onsat@rigzone.com
