Israel Electric set to sign new Tamar gas deal - GLOBES

23 Sep, 2019 18:26
Amiram Barkat

The gas price in the new agreement has been lowered to $4.30 per BTU for 18 months.

Israel Electric Corporation (IEC) is close to signing a new agreement with the owners of rights in the Tamar natural gas reservoir. The gas price in the new agreement has been lowered to $4.30 per BTU for 18 months, after which the agreement with IEC will be renegotiated. In effect, the agreement renews the competition between the Tamar and Leviathan reservoirs, because it enables IEC to buy gas from Tamar at a lower price than it obtained from Leviathan. The agreement is also an achievement for the Public Utilities Authority (Electricity), because it improves the terms in comparison with the previous agreement between IEC and Tamar, which the Public Utilities Authority refused to approve.

Leviathan won out over Tamar in a tender published by IEC for the purchase of variable quantities of gas beyond the minimum that it is obligated to buy from Tamar. The holders of rights in the two reservoirs offer the same price - $4.79 per BTU, but IEC management preferred Leviathan to Tamar.

Tamar Petroleum raising NIS 2.2b more on TASE - GLOBES

22 Feb, 2018 6:29

Omri Cohen

Yesterday's announcement of the agreement for exporting natural gas from Israel to Egypt is putting wind into the sails of the second bond issue by Tamar Petroleum, which own the Tamar natural gas reservoir. The Midroog rating company today announced that it had issued an A1 rating for up to NIS 2.178 billion in the Series B bonds to be issued by Tamar Petroleum. The rating is the same as for Tamar Petroleum's NIS 2.3 billion issue of Series A bonds last year.

Tamar Petroleum intends to use the amount to be raised to buy 7.5% of the rights in the Tamar reservoir from US company Noble Energy. The $800 million deal includes a $560 million cash payment, with the rest consisting of an allocation of shares, which will amount to 43.5% of Tamar Petroleum's share capital.

Midroog said that the bond issue would reach up to $605 million, but that any amount raised in excess of $560 million would be deposited in a special fund for early repayment of or buying back bonds.

Israel Electric wants to reopen Tamar gas deal - GLOBES

28 Jun, 2017 15:58
Nati Yefet

The company is paying $6 per MMbtu compared with $4.70 paid by private electricity producers.

The Israel Electric Corporation (IEC) (TASE: ELEC.B22) board of directors has ordered the company's management to negotiate the reopening of the gas agreement with the Tamar natural gas reservoir partners. IEC is paying nearly $6 per MMbtu, compared with $4.70 paid by the private electricity producers. The price is expected to continue rising, because it is linked to the US consumer price index.

Noble’s Cash Crunch Risks Snagging Leviathan Plans - HAARETZ

U.S. energy company has to come up with $2.5 billion at time it’s being hit by plunging oil prices, growing debt.

Eran Azran Jan 27, 2016 12:49 AM

Noble Energy, the key player in the Israeli gas industry as operating partner in the Tamar and Leviathan natural gas fields, is facing a financial crunch just as it is about to embark on a multibillion-dollar investment to bring Leviathan into production.

Developing Leviathan – by far Israel’s biggest gas reserve – will cost between $5 billion and $6 billion. Noble’s share amounts to $2.5 billon, with the rest coming from its Israeli partners, led by Yitzhak Tshuva’s Delek Group.