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Chevron partners greenlight $24m investment to boost gas production at offshore site

US energy giant Chevron and its partners in the Tamar reservoir off the country’s Mediterranean coast on Sunday announced a decision to invest $24 million to bolster natural gas production capacity from the offshore field.

The investment is part of a two-phase plan aimed at expanding natural gas production capacity to about 1.6 billion cubic feet (BCF) a day from the Tamar field, located west of Ashkelon, to meet Israel’s energy needs and to export gas to Egypt.

The Tamar partners okayed a so-called final investment decision (FID) needed to proceed with the second phase of the gas production expansion project.

Tamar natural gas field off the coast of Israel. (Courtesy)

US energy giant Chevron and its partners in the Tamar reservoir off the country’s Mediterranean coast on Sunday announced a decision to invest $24 million to bolster natural gas production capacity from the offshore field.

The investment is part of a two-phase plan aimed at expanding natural gas production capacity to about 1.6 billion cubic feet (BCF) a day from the Tamar field, located west of Ashkelon, to meet Israel’s energy needs and to export gas to Egypt.

The Tamar partners okayed a so-called final investment decision (FID) needed to proceed with the second phase of the gas production expansion project.

In the first phase of the project, a 150-kilometer pipeline will be laid from the Tamar field to the platform. The adjustments are expected to support the daily supply of production of 1.2 BCF of natural gas, up from the current 1.1 BCF. Work on both phases is scheduled for completion in 2025 at a total investment of $673 million.  Chevron operates and holds a 25% stake in the Tamar gas field. The partners in the Israeli gas reservoir include Isramco, which holds 28.75% of the rights in Tamar; Abu Dhabi’s Mubadala Energy, which holds 11%; Tamar Investme nt 2, which has an 11% share; Tamar Petroleum, which has a 16.75% share; Dor Gas with 4%; and Everest with 3.5%.

The investment approval comes after the partners in the gas field announced on Friday that they had secured a new gas sales agreement with Blue Ocean Energy,  Tamar’s Egyptian importer of Israeli gas.

Under the terms of the agreement, the Tamar partners will sell an additional 4 billion cubic meters (BCM) of natural gas per year to Egypt for a period of 11 years, or about 43 BCM. As of today, the Tamar reservoir exports to Egypt about 2 BCM per year. The supply of gas exports will commence on July 1, 2025 according to the agreement.

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