Delek Group Announces on Leviathan Final Investment Decision - Seite 2

On February 23, 2017, the Leviathan partners adopted a Final Investment Decision (FID) for development of Phase 1A in the development plan for the Leviathan Reservoir, at a capacity of approx. 12 BCM per year (1.2 Bcf/d), with a budget of approx. $3.75 billion (for 100% of the rights in the Leviathan Reservoir), with the aim of allowing commencement of the piping of natural gas from the Leviathan Reservoir by the end of 2019.

The Partnerships intend to finance its share in the Leviathan Reservoir development costs, inter alia, through credit from a consortium of local and foreign finance providers, as specified in the Partnerships immediate reports of February 21, 2017.

It is noted that upon the adoption of a final investment decision as aforesaid, the contingency pertaining to part of the contingent resources in the Leviathan reservoir is fulfilled, such that to the best of the Partnerships' understanding, these resources shall be classified as reserves. Accordingly, the Partnerships are acting, together with Netherland, Sewell and Associates, Inc., for receipt of a reserves and contingent resources appraisal report for the Leviathan reservoir and for preparation of updated discounted cash flow figures. Upon receipt of such report and figures, the Partnerships shall release an immediate report accordingly. 

Warning regarding forward-looking information - The above estimates in relation to the scope of the budget and the timetables for development of the Leviathan Reservoir, as aforesaid, constitute forward-looking information, within the meaning thereof in Section 32A of the Securities Law, 5728-1968. The said information is based on estimates of the Partnerships and the operator in the Leviathan Reservoir, based on a range of factors, including the development plan and the time tables for implementation thereof, receipt of regulatory approvals, estimated information on availability of equipment, services, costs, and on past experience. The estimates in this report may not materialize or materialize in a materially different manner if changes and/or delays occur in the range of factors specified above, and if the estimates received change, the market conditions change and/or due to a gamut of geopolitical changes and/or operating and technical conditions in the Leviathan Reservoir and/or unexpected factors relating to the exploration, production and marketing of oil and natural gas and/or as a result of the progress of development of the Leviathan Reservoir until completion thereof.