The partners in the Leviathan reservoir – NewMed Energy, Chevron Mediterranean, and Ratio Energies – have reached a Final Investment Decision (FID) for the Leviathan expansion project. The project budget is approximately $2.36 billion (100% basis). The expansion will enable an increase in the annual natural gas production from the reservoir to approximately 21 BCM, providing a long-term strategic response to domestic market demand alongside the realization of the historic agreement with Egypt for the export of approximately 130 BCM of natural gas. Total resources in the reservoir are estimated at approximately 635 BCM. Project completion and the commencement of gas production from the expansion project are expected in 2029.

The partners in the Aphrodite reservoir – NewMed Energy, Chevron, and Shell – have approved the commencement of Front-End Engineering Design (FEED) with a scope of approximately $106 million (the Partnership’s share is approximately $32 million), as part of the updated development plan for the Aphrodite field. According to the plan, the partners will establish an independent floating production facility to be located above the reservoir, and gas exports will be conducted via a pipeline connected to the Egyptian transmission system.

The execution of the FEED is a significant and required milestone prior to reaching a Final Investment Decision (FID), which is expected in 2027.

Following the Memorandum of Understanding signed for the export of natural gas from the reservoir to Egypt, the Aphrodite partners, the Government of Cyprus, the Cyprus Hydrocarbons Company (CHC), the Government of Egypt, and the Egyptian Natural Gas Holding Company (EGAS) continue to conduct negotiations toward the execution of binding agreements.

The partners in the Leviathan reservoir – NewMed Energy, Chevron Mediterranean, and Ratio Energies – have signed an agreement for the export of approximately 130 BCM of natural gas to Egypt, with an estimated value of approximately $35 billion. The partners have received export approval from the Ministry of Energy. The agreement will be implemented in two stages: the first stage is scheduled to commence in the first half of 2026 and includes the sale of an additional 2 BCM annually above current volumes. The second stage will take effect upon the completion of the Leviathan expansion project (Phase 1B) and includes the sale of approximately 110 BCM in varying annual quantities. The total volume under the new agreement, across both stages, is approximately 130 BCM of natural gas, utilizing a pricing formula primarily based on Brent oil prices. This transaction paves the way for the Leviathan expansion, ensuring sufficient production capacity for the Israeli market until 2064.

Following the Cypriot government’s approval of the Aphrodite reservoir development plan, the project partners (NewMed Energy, Chevron, Shell) together with the Government of Cyprus, the Cyprus Hydrocarbons Company (CHC), the Government of Egypt, and the Egyptian Natural Gas Holding Company (EGAS), have signed a non-binding Memorandum of Understanding which outlines the framework for continued negotiations regarding the export of natural gas from the reservoir to Egypt, including the establishment of necessary transmission infrastructure and sales arrangements.

Under the signed MOU, EGAS will serve as the exclusive purchaser of the natural gas produced from the Aphrodite reservoir. The partners will be granted the option to purchase a portion of the gas sold to EGAS as Liquefied Natural Gas (LNG).

The Government of Cyprus has approved the development plan for the Aphrodite reservoir, and the partners (NewMed Energy, Chevron, Shell) have signed an amendment to the concession agreement with the Cypriot government.

The approved development plan includes the establishment of an independent floating production facility to be located above the Aphrodite reservoir, with an estimated maximum production capacity of approximately 800 MMCF per day through four production wells in the first phase. Natural gas exports will be conducted via a subsea pipeline connected to the Egyptian transmission system.

The Aphrodite partners will complete the Pre-Front End Engineering Design (Pre-FEED) and Front-End Engineering Design (FEED) to reach a Final Investment Decision (FID) for the reservoir’s development in 2027. The commencement of natural gas production from the reservoir is anticipated in 2031.

The estimated cost of the updated development and production plan is approximately $4 billion (100% basis).

NewMed Energy, alongside international energy companies SOCAR (Azerbaijan) and BP (UK), has been awarded six natural gas exploration licenses in Cluster I within Israel’s Exclusive Economic Zone (EEZ).

In December 2022, the Israeli Ministry of Energy announced the fourth Offshore Bidding Round (OBR4) for natural gas exploration in four areas (E, G, H, I) covering 5,888 square kilometers within Israel’s EEZ. The bid included 20 exploration blocks.

Each partner holds an approximate 33.33% stake, with SOCAR designated as the license operator.

The exploration licenses in Cluster I are located in proximity to the active Leviathan gas field.

NewMed Energy has signed agreements with Adarco Energy and the National Office of Hydrocarbons and Mines of Morocco (ONHYM) to conduct natural gas exploration and production activities in the Boujdour Atlantique exploration license, located off the coast of Morocco in the Atlantic Ocean.

Under the agreements, NewMed Energy will hold a 37.5% interest in the exploration license. Adarco Energy will hold an additional 37.5%, with the remaining 25% held by ONHYM in accordance with local law.

NewMed Energy views Morocco as a target country with immense geological and commercial potential.

The Boujdour Atlantique license is located in the southern portion of Morocco’s Exclusive Economic Zone and has been granted for a total of eight years. According to the planned work program, geological and geophysical analysis will be conducted within 30 months of the license grant, with the first exploration well scheduled for approximately two and a half years thereafter.