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October 26, 2016 / 24 Tishri, 5777

Posts Tagged ‘Delek Group’

Israel’s Leviathan Consortium and Jordan Sign $10b, 15-Year Gas Deal

Monday, September 26th, 2016

Members of the Leviathan consortium, which includes Israel’s Delek group and the U.S.-based Noble Energy firm, signed a $10 billion contract on Monday to supply the Jordan Electric Power Company with natural gas for 15 years, beginning in 2019.

With the new agreement Israel will have become Jordan’s largest supplier of natural gas, providing the Hashemite Kingdom with approximately 45 billion cubic meters of the energy resource.

Israel’s Likud Energy Minister Yuval Steinitz called the deal “an extremely important national achievement,” according to Channel 10 television news. “This is an important milestone in strengthening the ties and strategic partnerships between Israel and Jordan and the entire region,” he emphasized.

Yossi Abu, CEO of Delek Drilling, was quoted by the Hebrew-language NRG news site as saying the deal “establishes the Leviathan oil field as a serious player on the energy map… It will contribute to the prosperity of [both] Israel and Jordan.”

Hana Levi Julian

Israel’s New Gas Deal Back on Track

Saturday, May 21st, 2016

The government’s gas deal is back on track with an agreement on four new principles for the stability clause nixed by the High Court of Justice.

The new, rewritten stability clause makes the gas deal a semi-binding piece of legislation.

According to the new deal, future governments will be allowed to review and then amend legislation in connection with the deal.

The new stability clause and its four new principles are to be reviewed at the weekly cabinet meeting on Sunday.

Hana Levi Julian

Noble Energy, Delek to Speed Up Israeli Gas Production at Leviathan

Thursday, February 25th, 2016

The developers of the mammoth Leviathan natural gas field filed an expanded development plan Wednesday with the Petroleum Supervisor at Israel’s Ministry of Infrastructure, Energy and Water Resources.

Texas-based Noble Energy Inc., Delek Group Ltd., and Delek Drilling LP now plan to speed up development to bring gas and condensates on stream by 2019, Globes reported.

There’s good reason to move as fast as possible: until the gas begins flowing, the cost of development is $5-6 billion. Still, the first estimate for what has become Israel’s largest infrastructure project was originally $6-7 billion.

Eight drilling sites are to be connected by an underground pipeline to the platform and rig where all the gas management systems will be installed. This platform will be linked to the coast by another pipeline to be built by the Israel Natural Gas Lines Company. From there, the gas will be sold to Israeli customers at home and exported to neighboring countries as well.

Production capacity will reach 21 billion cubic meters (bcm) per year in order to meet market demand. This is five bcm more than the original development plan, which capped at 16 bcm.

The annual pipeline capacity will only be 12 bcm; however there will be an additional outlet on the platform at sea, which could be used to export directly to a regional nation as needed. That outlet will also be able to handle a 12 bcm per year pipeline as well.

All the gas treatment which is to take place at sea, will be carried out in accordance with the national master plan that was approved by the relevant authorities.

Hana Levi Julian

Israel’s Leviathan Developers Ink Gas Deal With Egypt

Sunday, November 29th, 2015

Developers of the mammoth Leviathan natural gas field beneath Israel’s Mediterranean coastal waters have inked a deal with Egypt. It’s a deal that has had Israel’s government — and that of Cairo — holding their collective breath for months.

Leviathan will start pumping the natural gas to Egypt beginning in 2019 or 2020, for up to 15 years, according to the agreement. The price of the gas includes a floor price and is to be linked to the cost of Brent oil, Reuters reported.

The Leviathan developers and Egypt’s Dolphinus Holdings agreed in last week’s letter of intent to negotiate the terms on the final deal.

Natural gas will be pumped from Leviathan to the Dolphinus Holdings via an existing underwater pipeline, Dolphinus and the Leviathan developers said in a statement to the Tel Aviv Stock Exchange (TASE).

The pipeline was built nearly 10 years ago by East Mediterranean Gas (EMG) when gas was being piped from Egypt to Israel. At the time, EMG had been managing an Egyptian-Israeli gas agreement. But that deal collapsed in 2012 after unending terrorist attacks ended the flow in the gas pipeline that ran through the Sinai Peninsula.

Leviathan, which holds an estimated 622 bcm of gas, is being developed by the Texas-based Noble Energy and Delek Group through Delek Drilling and Avner Oil and Gas. Dolphinus represents Egypt’s non-governmental, industrial and commercial consumers.

“We’ve worked with Dolphinus before and we expect to reach a final agreement quickly,” Yossi Abu, CEO of Israel’s Delek Drilling told Reuters.

“The Egyptian market is thirsty for gas, both for domestic use and for their export facilities. There is a lot of room for cooperation there.”

Dolphinus already agreed earlier this year to a seven-year deal to purchase at least $1.2 billion of natural gas from the Israeli Tamar gas field.

Leviathan is located close to the Tamar field. Cyprus also has a role in some gas field development with Israel as well; the two countries share a common basic with Egypt which gas discoveries have been made.

In addition, the Italian company ENI announced in August of this year that it had discovered one of the largest gas fields in the world off Egypt’s Mediterranean coast. The reserves are estimated at about 30 trillion cubic feet of natural gas, the equivalent of about 5.2 billion barrels of oil.

Abu noted that the discoveries, together with Egypt’s cooperation, have created a natural leadership role in the region for Cairo.

“Egypt is becoming a regional hub through cooperation with the Leviathan and Tamar partners, and together with Israel and Cyprus,” he said.

According to the U.S. Geological Survey, the eastern Mediterranean contains huge gas reserves – estimated at approximately 122 trillion cubic feet.

Hana Levi Julian

Will Israel Destroy Its Own Energy Independence, Break Deal with Delek, Noble Energy?

Wednesday, December 24th, 2014

The Israeli government’s anti-trust authority is challenging the investors over the group’s monopoly in the field of natural gas development.

U.S.-based Noble Energy and Israel’s Delek group formed the partnership that discovered, explored and began drilling in the mammoth Leviathan gas field and the smaller Tamar field, both in coastal Mediterranean waters.

An original three-year agreement with Israel’s government was to allow the group to maintain control of the gas fields. They were to sell two smaller gas deposits in order to create competition in the local market.

David Gilo, who heads Israel’s Anti-Trust Authority, said on Tuesday however that he is considering backing away from the agreement.

Instead, Gilo said he may advise the government to break up the partnership in order to avoid a monopoly in the market. In response, the Tel Aviv Stock Exchange Tuesday morning suspending trading in shares of energy companies, including Delek.

Noble is threatening litigation, adding that it will “take all action necessary to protect its legal and legitimate rights.” Prospecting by other companies for offshore gas in the country has also halted out of concern over regulatory risk.

National elections that are now facing the country and the dog fighting involved has not done anything to help the situation either.

The Jewish State finds itself in the peculiar situation in which it clearly has the resources to finally become energy independence — yet appears to be on the bring of shooting itself in the foot well before it has the chance to liberate itself from its slavery to others.

Hana Levi Julian

Israel Corp, Tamar Oil Partners Sign $4 Billion Gas Contract

Monday, November 26th, 2012

Israel Corp. and the Tamar partners signed a $4 billion contract on Sunday, agreeing that Noble Energy, Delek Group, Isramco and Alon Natural Gas Exploration would provide for Israel Corp’s gas needs.

The deal turned Israel Corp into Israel’s second largest natural gas consumer, after the Israel Electric Company.

Though Israel Corp will be needing $10 billion worth of gas, the deal is for the short term, in anticipation of the entrance of competing gas suppliers, including Leviathan.

The deal will enable Israel Corp subsidiaries Israel Chemicals, Oil Refineries Ltd. And OPC Rotem to buy 16-20 billion cubic meters of gas from the Tamar field.

The deal comes after the collapse of an agreement between Israel Corp and an Egyptian gas provider following the fall of President Hosni Mubarak.

Malkah Fleisher

Printed from: http://www.jewishpress.com/news/israel-corp-tamar-oil-partners-sign-4-billion-gas-contract/2012/11/26/

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