Energean: coronavirus could delay Israel gas field development - GLOBES

6 Feb, 2020 15:05
Amiram Barkat

The FPSO for the Tanin and Karish offshore natural gas fields is under construction in China.

The coronavirus outbreak in China is liable to delay natural gas delivery by Greek company Energean Oil & Gas plc (LSE: ENOG; TASE: ENOG) to customers in Israel. Energean, which is developing the small offshore Karish and Tanin gas fields, announced today that it had been notified by TechnipFMC, a subcontractor for the Karish and Tanin development project that it "reserves the right to extend the agreement for completion of the project due to events beyond our control."

TechnipFMC is concerned that the quarantine in parts of China because of the virus will delay completion of the floating production storage and offloading unit (FPSO) designed to produce gas from Karish and Tanin and stream it to the shore. The FPSO, now being built in China at a cost of $2 billion, is scheduled to reach Israel before 2021, and to anchor above the fields, 100 kilometers off the shore.

3 Israeli cos buying gas from Karish, Tanin reservoirs - GLOBES

7 Dec, 2017 12:13

Sonia Gorodeisky

Israel Chemicals, Oil Refineries, and OPC will buy 39 BCM over 15 years.

Israel Chemicals (TASE: ICL: NYSE: ICL), Oil Refineries Ltd. (TASE:ORL), and OPC Energy Ltd. (TASE:OPCE), all Idan Ofer-controlled companies, have signed an agreement with Greek company Energean to buy natural gas from the Karish and Tanin reservoirs. The deal includes the supply of 39 BCM of gas over 15 years to the companies: 17 BCM to Oil Refineries, 13 BCM to Israel Chemicals, and 9 BCM to OPC Mishor Rotem. The deal also includes an 18-year extension option.

The price for the deal is believed to total $5.7 billion. Energean estimates that gas will begin flowing from its two reservoirs in 2020. The average price for the deal is about $4.10 per million Btu, 20% lower than the price in the agreements signed for gas from the Leviathan reservoir and 30% lower than the price that Israel Electric Corporation (IEC) (TASE: ELEC.B22) is paying from gas from the Tamar reservoir.

The three companies negotiated jointly with Energean in order to leverage their purchasing power to obtain better terms. At the same time, now that the negotiations have been concluded, each of the companies in the group has a separate agreement that is independent of the agreements with the others.

Energean doubles estimates for Karish, Tanin gas reserves - GLOBES

2 Nov, 2017 12:29
Sonia Gorodeisky

The Karish and Tanin reservoirs contain a potential of 136 billion cubic meters of natural gas - double the initial estimates, according to NSAI.

Greek energy company Energean announced this morning that according to independent assessments by the Netherland, Sewell & Associates Inc. (NSAI) engineering firm, the Karish and Tanin reservoirs contain a potential of 136 billion cubic meters (BCM) of natural gas - double the initial estimates.

Energean Signs Additional Gas Sales and Purchase Agreements for Natural Gas Supply from the Karish and Tanin Fields - BUSINESS WIRE

October 30, 2017 09:41 AM Eastern Daylight Time

LONDON--(BUSINESS WIRE)--Energean Oil & Gas (“Energean” or “the Company”) is pleased to announce that Energean Israel has signed three new Gas Sales and Purchase Agreements (“GSPAs”) with Dorad Energy Ltd. ("Dorad"), and with Ramat Negev Energy Ltd. ("Ramat Negev") and Ashdod Energy Ltd. ("Ashdod"), both subsidiaries of the Edeltech Group, for natural gas supply from the Karish and Tanin Fields, offshore Israel.

“The GSPA’s signed today enable the diversification of natural gas supply sources for local projects and contribute to the companies' business strategies.”

Greece’s Energean secures gas sales contracts - IN CYPRUS / CYPRUS WEEKLY / REUTERS

August 9, 2017

Greek oil producer Energean has exceeded its target for gas sales contracts needed before it goes ahead with plans to tap two gas fields off Israel’s coast, market sources said on Wednesday.

Energean bought the Karish and Tanin fields, located in deep waters around 100 kilometres off Israel’s coast, last August for $148 million from U.S.-Israeli partners Delek Group and Noble Energy.

It plans to lease its own floating production, storage and offloading vessel and build a separate pipeline to Israel at a cost of up to $1.5 billion.

Energean had targeted gas sales contracts of 3 billion cubic metres annually before making a final investment decision and has so far secured 4.6 bcm a year, market sources said.

Israeli oil pipe operator eyes gasline to Turkey - NATURAL GAS WORLD

November 25th, 2016, 9:06amYa'acov Zalel

Israeli Eilat-Ashkelon Pipeline Co will explore the possibility of building a natural gas pipeline between the Leviathan gas field and Turkey, reported Calcalist, a business website. EAPC is the operator of a 250-km oil pipeline between the southern town of Eilat, Israel, on the most northern point of the Red Sea, and the oil terminal in the city of Ashkelon, on the Mediterranean.

Engagement in an Agreement for the Supply of Natural Gas from the Leviathan Project to Edeltech - DELEK GROUP

Tel Aviv, January 31, 2016.

Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that attached is an Immediate Report submitted by each of Avner Oil Exploration Limited Partnership and Delek Drilling Limited Partnership ("the Partnerships") with regard to an agreement that was signed for the supply of natural gas between the Partnerships and the other Leviathan Partners and Edeltech Ltd.

Further to the provisions of the Partnerships’ immediate reports of January 7, 2016 regarding the holding of talks and/or negotiations of the partners in the Leviathan project, including the Partnership (the “Leviathan Partners”) for the marketing of natural gas to potential consumers in the local market, the Partnerships hereby respectfully announce as follows:

On Saturday evening, January 30, 2016, an agreement was signed for the supply of natural gas between the Partnerships and the other Leviathan Partners and Edeltech Ltd. (“Edeltech” or the “Buyer”), whereby Edeltech will buy from the Leviathan Partners natural gas for the purpose of operating power plants which it is due to build, together with its Turkish partner Zorlu, in Ashdod and Mishor Rotem (the “Supply Agreement”).

According to the Supply Agreement, the Leviathan Partners undertook to supply to the Buyer natural gas at a total scope of approx. 6 BCM (billion cubic meters) (the “Total Contractual Quantity”), in accordance with the terms and conditions specified in the Supply Agreement.

Press Release - Update with Regards to Natural gas supply agreements from the Tamar project | Delek Group

Tel Aviv, Tuesday, December 29, 2015. Delek Group's gas subsidiaries announced that on December 28, 1015, the Antitrust Commissioner ("the Commissioner") made a decision regarding an exemption for the conditions in restrictive arrangements between the Tamar gas reservoir partnership and natural gas consumers, further to the application of the Tamar partners, according to which the Commissioner granted an exemption from a restrictive arrangement in accordance with Section 14 of the Antitrust Law, 1988, which applies to nine agreements for the supply of natural gas signed by the Partnerships in the Tamar project, listed in the decision (the main ones are the agreements with OPC Rotem Ltd., Dorad Energy Ltd., and Paz Ashdod Refinery Ltd.).[1] 

The terms set out in the Commissioner's decision are substantially similar to the terms set out in the preceding decisions, except that it prescribes that the announcement of the reduction of the purchase quantity will be permitted at any time during the period, which will end at the later of the following periods: (a) the period between January 1, 2020 and December 31, 2022 (in the previous decision, the period was between January 1, 2018 and December 31, 2020); or (b) the period starting at the beginning of the fifth year from the date of natural gas supply and ending at the end of the seventh year ("The Commissioner's New Decision").

The receipt of the Commissioner's New Decision fulfilled the precondition in the agreements related to the decision, which required the Commissioner's approval.

The Tamar partners will take steps to amend the purchase agreements with these consumers in accordance with the Commissioner's New Decision.

The Partnership believes that the Commissioner's New Decision is not expected to have a material effect on the Partnership's projected cash flow from the Tamar project.

For more information please see the immediate reports as published on TASE:
http://maya.tase.co.il/bursa/report.asp?report_cd=1011141

SOURCE

Australian Woodside Execs Due In Israel ;Turkey’s Zorlu Seeks Leviathan Gas | Jewish Business News

11 Nov 2013

Representatives of Australia’s Woodside Petroleum will be in Israel shortly to move forward on buying 30% of the Leviathan field.

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Representatives of Australia’s Woodside Petroleum Ltd. (ASX: WPL) will soon arrive in Israel to move forward on the acquisition of 30% of the Leviathan field for $1.25 billion. The representatives may arrive this week. “Globes” recently reported that the negotiations on the deal would be reopened, after the High Court of Justice approved the government decision to export 40% of Israeli natural gas. This means that gas from Leviathan will be exported.

Energy market sources believe that Leviathan’s Israeli partners - Delek Group Ltd. (TASE: DLEKG) and Ratio Oil Exploration (1992) LP (TASE:RATI.L) – will demand a much higher price from Woodside’s original offer for the rights to the gas field, otherwise the deal might fall apart. The main arguments behind the demand are the increase in Leviathan’s potential reserves from 16 trillion cubic feet (TCF) to at least 19 TCF, the much higher chances of finding large quantities of oil, and rising competition from Turkish companies interested in buying the gas.

Noble Energy Inc. (NYSE: NBL) owns 39.66% of Leviathan, Delek Group units Avner Oil and Gas LP (TASE: AVNR.L) and DD) each own 22.67% and Ratio owns 15%.

In a separate development, Turkish conglomerate Zorlu is in talks to buy natural gas from Leviathan.Zorlu Energy CEO Ibrahim Sinan Ak, said for the first time on Friday, that the company was interested in buying 3 billion cubic meters of natural gas a year from the Israeli gas field under a 15-year contract.

Media reports say that the gas purchases would be part of a project to lay a pipeline from the Leviathan field to Turkey, at a cost of $2.5 billion. JPMorgan says that a pipeline from Leviathan to Turkey would have a higher return on equity than construction of a liquefied natural gas (LNG) plant, and that the payback period would be less than four years.

The choice of projects could have a major effect on the future of the pending deal between Leviathan’s partners and Woodside Petroleum Ltd. (ASX: WPL). The Australian company, which has offered $1.25 billion for 30% of the rights to Leviathan, specializes in building LNG plants, and its customers are in East Asia. For Woodside, there is no special added value in a pipeline to Turkey.

Ak spoke at the European Energy Summit in Istanbul. Delek Drilling LP (TASE:DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L) chairman Gideon Tadmor, who also attended, said that there was no reason that Israeli gas should not begin flowing to Turkey by 2017. “For this to happen, we must speed up the negotiations on the development plans and obtain support from both governments,” he said.

There have been reports that Zorlu is a partner in several of the consortia which have expressed an interest in laying a pipeline from the Leviathan gas field to the company’s customers in Turkey.

Zorlu, one of Turkey’s largest companies, owns 25% of Dorad Energy Ltd., which will become Israel’s largest independent power station, as well as stakes in two smaller power stations under construction adjacent to Makhteshim Agan Industries’ plants at Ramat Hovav and in Ashdod.

Published by www.globes-online.com

SOURCE