One week after drilling of the Leviathan 3 well began, Noble Energy Inc. (NYSE: NBL) has announced that there is a delay in the work. The company said that the delay takes into account the work plan and that drilling, in order to precisely estimate the natural gas reserves in the field, has reached 2,600 meters depth, and is so far ahead of schedule.
The reason for the delay is a problem with the pressure regulator. Sand has penetrated into the pressure regulator, which must now be cleaned out, and this process could delay drilling by up to a week. Noble Energy and its partners in the Leviathan gas field believe that such problems are always likely to happen, and were factored into the work schedule. Consequently, no special announcement about the delay has been made by the Leviathan partners.
The Leviathan 3 drilling, which replaced the abandoned Leviathan 2 drilling after problems were encountered, is located offshore from Haifa, 4.4 kilometers from Leviathan 2. Leviathan 3 is 9.6 kilometers from Leviathan 1, which has drilled to a depth of 5,300 meters and will continue for a further three months.
The budget for the drilling is $70 million. Production tests if undertaken will last two to three weeks and cost $34 million.
In addition to Noble Energy, the Leviathan partners are Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) and Ratio Oil Exploration (1992) LP (TASE:RATI.L).
Published by Globes, Israel business news - www.globes-online.com - on July 6, 2011
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