Chevron Faces Delays in Dismantling Ashkelon Gas Platform
Translated & summarized from TheMarker by baba
Israel's Ministry of Energy is in negotiations with Chevron over the dismantling of the Mari gas platform off Ashkelon, which has been unused for over a decade. The project has already cost $273 million with no completion timeline. Dismantling costs can rival construction expenses, slowing down the process.
The story in 5 lines · by baba
- Chevron faces delays in dismantling the Mari gas platform off Ashkelon, unused for over a decade.
- Israel's Ministry of Energy has been negotiating with Chevron for the past year.
- The platform's dismantling project has cost $273 million to date.
- There is currently no timeline for the completion of the platform's removal.
- Dismantling costs can be as high as the initial construction expenses.
Israel's Ministry of Energy has been attempting to negotiate with Chevron over the past year regarding the dismantling of the Mari gas platform off the coast of Ashkelon. The platform has been out of commercial use for over a decade, and there is currently no set timeline for the completion of its removal project. To date, the dismantling effort has cost $273 million.
While the discovery and development of new gas fields often attract significant investment, the decommissioning of such infrastructure is a less glamorous and more complex regulatory battle. According to a government official familiar with the matter, the cost of dismantling a platform can approach its initial construction cost, a factor that disincentivizes companies from acting promptly.