Israel's Delek Group Mulling $280M Sale of Royalties From Tamar Offshore Gas Field - HAARETZ

Yitzhak Tshuva

Oct 18, 2017 2:57 AMEran Araz
Delek Group faces a government deadline to divest its 31.25% stake in Tamar by 2020 as part of regulation in place to dismantle Israel's gas cartel

In a deal that could be valued at 1 billion shekels ($280 million), Delek Group is weighing a plan to sell the royalties it is entitled to from its Delek Drilling subsidiary to investors, TheMarker has learned.

Known as overriding royalties, the money is paid to Delek Group from revenues generated from the Tamar gas field and are paid out before Delek Drilling pays dividends to the holders of its participation units.

The royalties have amounted to 3% of revenues until now but are due to rise to 13% now that Delek Drilling has earned back the cost of developing Tamar.

Egypt lays gas-hub foundations - PETROLEUM ECONOMIST

10 August 2017
Gerald Butt

President Sisi has signed into law new gas-sector regulations expanding the role of the private sector

A casual reader of Egypt's Official Gazette mightn't find much in the way of excitement in Law 196 of 2017. But for anyone interested in the country's burgeoning natural gas sector it's hugely important.

In effect, Egypt is taking a giant step towards becoming the region's natural gas hub and putting itself beyond the reach of potential competitors like Cyprus and Turkey. The new law allows private-sector firms to use the state import and distribution infrastructure to trade in natural gas.

House passes Natural Gas Act, Mineral Resources Act - ENTERPRISE / AL SHOROUK

Thursday, 6 July 2017

The House of Representatives has finally approved the long-awaited Natural Gas Act without any amendments, Al Shorouk reports. 

The 53-article legislation would deregulate the natural gas market and leave the state to play the role of regulator. 

The law — which will allow the private sector to trade gas using the state’s infrastructure and pipeline network and establish a new authority to regulate and monitor the market — had been gathering dust since 2015, with a number of companies already having applied to import natural gas and had been waiting on the law. 

This should be welcome news for everybody.

EC’s Director General meets with Finance and Petroleum Ministers - ENTERPRISE / EGYPT'S MINISTRY OF PETROLEUM

Thursday, 13 April 2017

Finance Minister Amr El Garhy discussed cooperating with the European Commission on improving the country’s tax system with its Director GeneralChristian Danielsson on Wednesday. The commission’s delegation expressed interest in providing technical and financial support to improve the efficiency of Egypt’s tax collection, and helping bring up revenues in line with economic performance, according to a ministry statement.

The European delegation also sat down with Oil Minister Tarek El Molla to discuss implementing the Natural Gas Act, which would deregulate Egypt’s gas market and see the state take on the role of regulator. They discussed the possibility of the EU funding more sustainable energy projects, according to a statement from the ministry.

Gov’t timeline to cut down on subsidies ends in 2019 - ENTERPRISE / AL SHOROUK

Tuesday, 21 March 2017

Gov’t timeline to cut down on subsidies ends in 2019: The government does not plan to fully eliminate fuel subsidies, said Oil Minister Tarek El Molla in an extensive interview with Al Shorouk. The timeline to reduce spending on fuel subsidies will end in 2019, but the government will keep paying for fuel subsidies after that, he added. It is worth noting that Egypt had only committed to “reducing fuel subsidies” in its agreement with the IMF for the USD 12 bn loan, but had agreed to a complete phase-out of subsidies for electricity in the coming five years. Other takeaways from the interview:

House to vote on Natural Gas Act in March - ENTERPRISE / AL BORSA

Monday, 20 February 2017

House to vote on Natural Gas Act in March: The House of Representatives’ Energy Committee expects to complete reviewing the Natural Gas Act — which would largely deregulate the sector — this week and move it to the floor of the House for a vote in March, Al Borsa reports. 

The committee, which has been reviewing the bill since December following preliminary approval from the House general assembly, downplayed the “minor amendments” that they reportedly introduced, MP Hamada Ghallab said, without explaining further. Progress from a regulatory standpoint has been taking place, with the Oil Ministry beginning a draft of the executive regulations and EGAS setting a preliminary toll of USD 0.4 per mmBtu for private companies looking to use the national gas grid last month.

EGAS sets initial price of USD 0.4 per mbtu for private companies to use national gas grid - ENTERPRISE / AL SHOROUK

Monday, 23 January 2017

On step closer to deregulating the gas market: We have inched one step closer to seeing the gas market privatized as the Egyptian Natural Gas Holding Company (EGAS) has set a preliminary price of USD 0.4 per mbtu for private companies looking to use the national gas grid, unnamed sources tell Al Shorouk.

EGAS appears to have side-stepped forming the new regulator for the industry, which as per the Natural Gas Act is supposed to set prices, and moved directly on that front.

Deregulation - ENTERPRISE

Monday, 26 December 2016

The Electricity Act and the Natural Gas Act, which would deregulate their respective sectors were two of laws that excited us the most when they were announced. With so many sectors of the economy still under government control, it would almost seem inconceivable that such strategically vital sectors would be slated for privatization for Egyptians and foreigners. At the time they were proposed, Egypt had become a net importer of natural gas and suffering through critical power shortages. It was hoped by allowing the private sector in supply and distribution would be made more efficient by introducing competition, spur domestic and foreign investment in the sector, and reduce the immense expenses incurred by the government as a result of being the sole operator. More crucially, it would help ease the government’s transition away from subsidizing electricity and gas to the Kramers. Neither law has been implemented as of the end of 2016, but slow progress is still progress.

Natural Gas Act moving along at House of Representatives - ENTERPRISE

Wednesday, 21 December 2016

The House of Representatives’ committee on energy is holding sessions to discuss the new Natural Gas Act, Al Shorouk reported. The legislation aims to deregulate Egypt’s natural gas industry and help turn Egypt into a regional energy hub. MPs said that they hope to deregulate the market gradually, in tandem with the gradual subsidy phase-out.

House approves in principle the deregulation of the natural gas industry - ENTERPRISE

Sunday, 18 December 2016

Deregulation of the natural gas industry is one very big step closer to being a reality after the House of Representatives gave its preliminary approval on Thursday to the Natural Gas Act. The deregulation of the sector is now one full vote away from becoming a reality. 

The law will come into effect and new licenses to operate will be issued in 2017, said Oil Minister Tarek El Molla, according to Al Shorouk. 

The ministry is currently working on the law’s executive regulations. Al Masry Al Youm carries what it says is a rundown on key features of the law — take them with a grain of salt, but they are in line with our expectations, if incomplete. 

Highlights: