Delek Group Announces on Leviathan Final Investment Decision

TEL AVIV, Israel, Feb. 23, 2017 /PRNewswire/ -- Delek Group (TASE: DLEKG, US ADR: DGRLY) ("the Company") announces that pursuant to the Company's Immediate Report dated December 12, 2016 (ref no. 2016-01-138493) concerning the decision of the directors of the general partners of Avner Oil Exploration Limited Partnership and Delek Drilling Limited Partnership (jointly "the Partnerships") to approve the development program for the Leviathan Field in the area of Lease I/14 Leviathan South and I/15 Leviathan North ("the Leviathan Field"), provided below is an Immediate Report issued by each of the Partnerships that on February 23, 2017 the Leviathan Partners including the Partnerships took the Final Investment Decision (FID) for the development of Phase 1A in the development plan of the Leviathan Field, with an annual capacity of 12 BCM, in order to start the flow of natural gas from the Leviathan Field by the end of 2019, as detailed in the attached report.

Asaf Bartfeld, President and CEO of Delek Group: "The final investment decision in Leviathan, following the Natural Gas Outline Plan, is not only a substantial step forward for Delek Group, but a major leap for the Israeli energy industry and economy. Developing Leviathan and pursuing more export agreements, coupled with supply to the domestic market, will ensure energy security for Israel and will add to Delek Group's stability."

Further to the provisions of Section 7.25.1 of the Partnerships' periodic report as of December 31, 2015, as released on March 28, 2016, and the Partnerships' immediate report of May 22, 2016 on Government Resolution no. 476 of August 16, 2015 regarding the framework for the increase of the quantity of natural gas produced from the natural gas field "Tamar" and swift development of the natural gas fields "Leviathan", "Karish" and "Tanin" and additional gas fields, in Section 4.3 of the update of Chapter A (description of the Partnerships' business), as included in the Partnerships' quarterly report as of June 30, 2016, as released on August 24, 2016 on the approval of the Leviathan Reservoir development budget in the sum of approx. $119 million (100%) for the year 2016, until the end of January 2017, and in the Partnerships' immediate reports of December 12, 2016 regarding the decision of the board of directors of the Partnerships' general partner to approve the development plan for the Leviathan reservoir, in the area of the I/14 Leviathan South and I/15 Leviathan North leases (the "Leviathan Reservoir"), the work plan and the budget for development of Phase 1A of the development plan at a scope of approx. U.S. $3.5 to 4 billion (for 100% of the rights in the Leviathan Reservoir), and to authorize the Partnerships' management to approve a final investment decision for development of the Leviathan Reservoir, in accordance with the provisions of the Joint Operating Agreement (JOA), the Partnership respectfully announces as follows: