Leviathan Well May Cost $4.5 bn to Develop

Developing the offshore well in Israel's Leviathan natural gas field may cost about $4.5 billion, not including infrastructure for exports, Reuters has reported quoting an official familiar with the project.

The cost forecast was part of a development plan the consortium recently presented the government, the official said, according to Reuters.

The giant gas field was discovered in 2010 and may hold as much as 19 trillion cubic feet (tcf) of natural gas.

Texas-based Noble Energy, which leads the Leviathan group, has said that because Israel is such a small market, it could not commit to developing the field unless a significant amount of gas was allowed to be sold abroad, Reuters said in its report.

Noble has a 39.66 percent stake in Leviathan. Israel's Avner Oil Exploration and Delek Drilling each have a 22.67 percent stake, and Ratio Oil Exploration holds the remaining 15 percent.

Australia's Woodside has agreed to purchase a 30 percent stake in the project, but officials say the deal can only be finalised after Israel determines its export policy, Reuters said.