Leviathan partners Close to Signing Loan for the gas field Development

Delek Drilling and Avner Oil and Gas LP, controlled by Delek Group, the partnerships with the rights in the Leviathan gas field, have signed loan contracts for the $1.75 billion loan with HSBC and JPMorgan Chase.

The lenders are a consortium of twenty institutions that includes both foreign and Israeli banks and investment houses, to finance stage 1A of development of the reservoir, which is expected to cost as much as $4 billion.

The partnerships, which control a combined 45.3% of the gas field, are taking the loans in spite their partner Noble Energy said last week that it will announce its final investment decision during the first quarter. The two are signing now because the commitment letters they signed two months ago with the lenders expired Monday, Haaretz reports.

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