Israel’s Tamar: Chevron FIDs 1.6bn Cfd Expansion With Egypt Sales Boost

23 Feb 2024 Issue: 67 / 8 By: Peter Stevenson

Chevron and its partners have taken FID on increasing capacity at Israel’s Tamar gas field to 1.6bn cfd with a deal to triple sales to Egypt to over 600mn cfd from mid-2025. Pipeline constraints in Egypt imply that Leviathan deliveries will have to fall to make room for the additional Tamar volumes.

Chevron and its partners at Israel’s 13tcf, 1.1bn cfd Tamar field on 18 February announced a final investment decision (FID) on expanding the field’s capacity to 1.6bn cfd from late 2025 having in December 2022 approved an initial increase to 1.2bn cfd (MEES, 9 December 2022).

This came just two days after the Tamar partners (Chevron 25%op, Isramco 28.75%, Tamar Petroleum 16.75%, UAE state firm Mubadala Energy 11%, Aaron Frenkl 11%, Dor Gas 4%, Everest 3.5%) announced the key sales deal to Egypt which underpins the expansion. This will see an additional 43bcm delivered to Egyptian state-backed buyer Blue Ocean Energy between 1 July 2025 and “the end of the agreement period” which according to the initial contract penned in February 2018 and amended in October 2019, is 31 December 2034. (CONTINUED - 1593 WORDS)