SEP 28, 2016 @ 12:31 PM, Yakir Gillis, CONTRIBUTOR
Despite promising potential reserves and a favorable regulatory framework, Israeli offshore gas exploration is a tough sell.
Israel has been looking to develop its huge offshore gas resources after a period of regulatory uncertainty, but the challenges surrounding the construction and security of export pipelines may put off all but the most forward-looking investors.
Israel has one of the biggest gas reserves in the eastern Mediterranean basin, the Leviathan field, which could in time turn it into a major regional energy player. However, getting the gas out of the ground has been dogged with problems. Chief among them was an antitrust ruling stemming from concerns that the two main exploration companies, Texas-based Noble Energy and Israel’s Delek, stood to monopolise the country’s natural resource sector.
A recent visit by Egypt’s Foreign Minister could signal potential cooperation between Israel and Egypt in the eastern Mediterranean gas fields. However, given domestic market needs mixed with a complicated history in Egypt-Israel business relations in the energy sector, the future remains unclear
Mohamed Samir, July 14, 2016
In a rare trip, Egypt’s Foreign Minister Sameh Shoukry paid Israel a visit on Sunday, marking Egypt’s first high-level official visit in almost a decade. While pundits antagonise whether this may be a sign of warmer relations between Israel and Egypt, the latter continues to face an ongoing energy crisis.
While Egypt’s energy crisis may be a domestic concern, a long history of cooperation between Israel and Egypt over gas imports and exports raises questions of whether such a topic was broached during conversations between Shoukry and the Israelis.
