AUGUST 20, 2017 / 1:46 PM
Reporting by Steven Scheer; editing by Mark Heinrich
JERUSALEM, Aug 20 (Reuters) - An Israeli exploration group said on Sunday it would return its licences to develop a natural gas field off Israel's Mediterranean coast to the government, citing a number of factors including a lack of investors.
Returning the licence to all rights to develop the Daniel gas fields could be a significant blow to Israel, which is seeking to become energy-independent and an exporter while developing competition in its existing gas sector.
A group led by Isramco Negev and Modiin Energy last year said a resource report showed there could be an estimated total of 8.9 trillion cubic feet (tcf) of natural gas at the Daniel East and West fields.
It said on Sunday its decision to give up its rights was based, among other things, "on assessments regarding the level of geological risk in the licences, the difficulties expected in commercialising the gas, if and when it is discovered, and the lack of interest by new investors."
Returning the licence to all rights to develop the Daniel gas fields could be a significant blow to Israel, which is seeking to become energy-independent and an exporter while developing competition in its existing gas sector.
A group led by Isramco Negev and Modiin Energy last year said a resource report showed there could be an estimated total of 8.9 trillion cubic feet (tcf) of natural gas at the Daniel East and West fields.
It said on Sunday its decision to give up its rights was based, among other things, "on assessments regarding the level of geological risk in the licences, the difficulties expected in commercialising the gas, if and when it is discovered, and the lack of interest by new investors."
