Israel’s offshore Leviathan gas field experienced declining gas production volumes and prices in Q2 2020, following a drop in regional demand as a result of the Covid-19 pandemic, Kallanish Energy reports.

A H1 2020 update published by project partner Derek Drilling recorded total net gas production of 0.74 billion cubic meters (Bcm) in Q1 and 0.65 Bcm in Q2, a quarter-on-quarter decline of 12%.

The production figures represent the 45.34% Delek Drilling stake in the Leviathan field only.

Delek Drilling also recorded average gas prices of $5.43 per thousand cubic feet (Mcf) in Q1 and $5.04 in Q2 for its stake — a decrease of 7%.

Gross sales for the Leviathan gas field overall totalled approximately 1.6 billion cubic meters (Bcm) and 1.4 (Bcm) in Q1 and Q2 this year respectively. Derek Drilling stated that the Q2 decline was due to “well management to match regional demand.”

The forecasted gross sales for the Leviathan field for 2020 and 2021 have been revised, according to Delek Drilling, decreasing from 9.3 bcm and 10.8bcm, to 7 bcm and 8.9 bcm in 2020 and 2021 respectively. The average price is forecast to be approximately $5 per million British thermal units (MmBtu).

The Leviathan gas field is expected to produce 1.2 billion cubic feet per day of natural gas during its first phase of development, from four producing wells. Gas production at the field commenced in December 2019.

Ownership of the Leviathan gas field is split between Delek Drilling, Noble Energy (39.66%), Ratio Oil (15%) The field is operated by Noble Energy, which will be taken over by Chevron. (See related story)

This post appeared first on Kallanish Energy News.