Energy Ministry declares Tanin, Karish gas discoveries
12/08/2014, 12:32 Globes correspondent
The declaration will let Delek and Noble sell the fields to avoid being labelled a cartel.
Another hurdle has been surmounted in the sale of the Tanin and Karish gas fields. Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling Limited Partnership (TASE:DEDR.L) reported this morning that the Energy Ministry Petroleum Commissioner had declared Tanin and Karish proven discoveries.
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This approval is critical in order to push forward with the sale of the fields to a third party as part of a compromise deal between the Antitrust Authority regulator and the gas partnerships. Delek and Noble Energy Inc.(NYSE: NBL) are committed to selling Karish, Tanin and a part of Leviathan to another market player to avoid being declared a monopoly in the Israeli market.
Selling the two fields is in effect a precondition to receive an exemption from the Leviathan partners being labelled a cartel. Both Karish and Tanin adjoin Leviathan and contained a combined potential of 80 billion cubic meters (BCM) of which 60 BCM are proven with a probability of above 70%.
Noble Energy holds 47% of Karish and Tanin and Delek Group's units hold 53%.
Delek Drilling and Avner also reported that they have extended their proposal until November in the tender to supply natural gas to Cyprus. Sources inform "Globes" that four companies have reached the second stage. The Israeli companies have a major advantage because they can supply gas by undersea pipeline whereas the other proposals involve LNG supply.
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2014
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Link to source: http://www.globes.co.il/en/article-energy-ministry-declares-tanin-karish-gas-discoveries-1000962798
