Energean CEO: Israel is sole energy independent Mediterranean country - GLOBES

20 Dec, 2023 11:17
Netanel Ariel

At the Israel Business Conference, Mathios Rigas praised Israel's energy policy, and said there was no point in keeping gas in the ground.

"Energy independence is important regardless of whether there’s a war or not. Israel is the only Mediterranean country that is energy independent. The mistake that the Europeans made is that they handed the energy keys to President of Russia Vladimir Putin, and when war broke out, gas prices skyrocketed. But in Israel, they remained stable," Mathios Rigas, CEO of energy company Energean (LSE: ENOG), said yesterday at the Globes Israel Business Conference. Energean owns the rights in the Karish and Tanin gas reservoirs off Israel’s coast.

"The biggest challenge we face in Europe is that if there’s a cold winter and there’s any disruption to the gas supply, gas prices in Europe will soar again, and inflation will rise," Rigas warned. "The reason is that there has been no investment in gas production. That’s the great advantage that Israel has today," he added.

State finds Delek Drilling violated Tamar gas agreement - GLOBES

6 Sep, 2020 17:46
Amiram Barkat

Delek Drilling and Noble Energy were found to have a conflict of interest because they can veto Tamar sales deals in favor of selling Leviathan gas.

The Tamar partners will be required to find a new marketing and sales mechanism for the natural gas from the offshore field according to a precedent-setting opinion prepared by an inter-ministerial committee headed by deputy attorney general Adv. Meir Levin, head of the Israeli Competition Authority Adv. Michal Halperin and representatives from the Energy, Finance and Justice Ministries.

The decision was reached after the minority partners in Tamar (Isramco, Tamar Petroleum and Dor Gas) complained that the majority partners Delek Drilling LP (TASE: DEDR.L) and Noble Energy prevented them signing a deal to sell gas to the Israel Electric Corporation (IEC) (TASE: ELEC.B22) from Tamar because IEC was seeking to buy gas from the Leviathan partners at a higher price.

Noble Energy laying off dozens in Israel - GLOBES

3 May, 2020 15:59
Amiram Barkat

Sources in Israel stress that the layoffs will not affect the flow of gas from the offshore rigs or the service that the company provides its customers.
US energy exploration and production company Noble Energy Inc. (NYSE: NBL) has begun laying off dozens of employees in Israel as part of its international streamlining plan.

The company, which operates the Tamar and Leviathan gas fields, has several hundred employees in Israel, some on the gas rigs themselves and others in its Israel head office in Herzliya. Sources in Israel stress that the layoffs will not affect the flow of gas from the offshore rigs or the service that the company provides its customers.

Delek loses 5% of Delek Drilling - GLOBES

26 Mar, 2020 12:20
Omri Cohen

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has been forced to reach a painful compromise in its dispute with Citibank concerning participation units in its energy exploration and production unit Delek Drilling LP (TASE: DEDR.L) attached in Citibank's favor. Figures published by Delek Group indicate that the compromise reached by the group with Citibank and the Dayan family, which signed an agreement to buy the attached participation units, will cost Delek Group NIS 120 million in terms of market cap.

Up until now, Delek Group held 60% of the participation units in Delek Drilling, with a market value of NIS 2.38 billion. Early last week, Delek Group revealed that participation units constituted 15% of the partnership's capital were attached in favor of Citibank in order to secure a loan, the outstanding balance of which totals $57 million.

Israel Electric buys gas 45% below Tamar prices - GLOBES

23 Feb, 2020 18:19
Amiram Barkat

With the coronavirus outbreak pushing down gas prices, IEC has bought liquefied natural gas for $3.39 and $3.61 per BTU.

Because the coronavirus crisis is pushing down global liquefied natural gas (LNG) prices, Israel Electric Corporation (IEC) (TASE: ELEC.B22) is buying up LNG at the lowest ever price. Sources inform "Globes" that IEC is buying LNG on the spot market at an average price of $3.50 per BTU, 45% lower than the price paid by the company to owners of the Tamar natural gas reservoir. Every LNG cargo purchased at these prices lowers the electricity rate by 0.1-0.2%, and IEC is planning to buy more such cargoes.

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.

Tamar Petroleum slumps on delayed offering - GLOBES

12 Jan, 2020 13:03

Kobi Yeshayahou

Tamar Petroleum Ltd. (TASE: TMRP) has seen its share price fall sharply today after the company's board decided to postpone a secondary offering of NIS 140 million due to "market conditions." The company's share price is down 12% today and is down 50% over the past year.

Tamar Petroleum was founded by Delek Group Ltd. (TASE: DLEKG) and its energy exploration and production unit Delek Drilling LP (TASE: DEDR.L) in 2017 as a special vehicle to sell its holding in the Tamar offshore gas field after the government insisted Delek sell its stake in either the Tamar or Leviathan fields to prevent it gaining a monopolistic stranglehold on Israel's gas market. After offerings by Delek and Noble Energy Inc. (NYSE: NBL), Tamar Petroleum today holds a 16.75% stake in the Tamar field along with Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) (28.75%), Noble Energy (25%), Delek Drilling LP (TASE: DEDR.L) (22%), Alon Natural Gas Exploration Ltd. (TASE: ALGS) (4%), and Everest infrastructure Fund (3.5%).

Leviathan gas begins flowing to Jordan - GLOBES

Yuval Steinitz, Israel's energy minister

2 Jan, 2020 9:02

Jordan's National Electric Power Company (NEPCO) has said that the experimental supply of natural gas by US-based Noble Energy Inc. started as of yesterday. "The experimental pumping, which will last three months, is aimed at testing the infrastructure prior to the actual commercial supply," NEPCO added.

NEPCO continued, "The gas supply is in line with an agreement signed between the two companies in 2016. Under the agreement, Noble Energy will provide gas worth $15 billion dollars to the Kingdom for a period of 15 years, or 300 million cubic feet on a daily basis."

No mention in NEPCO's statement was made of either Israel or Leviathan because the agreement to buy Israeli gas is unpopular with many in Jordan. Last year Jordan's parliament scrap the deal.

Will Leviathan cut energy prices, increase competition? - GLOBES

23 Dec, 2019 19:30
Amiram Barkat and Yuval Azulai

Gas is about to begin flowing from the huge offshore Israeli gas field, on time and within budget. But will it benefit Israeli consumers?

The Leviathan natural gas field is set to begin streaming gas to the Israeli coast tomorrow, an event that the government and the reservoir's developers are calling historic. Almost six years since the Tamar field was connected, Leviathan will become the second major gas field connected to the Israeli coast. Nine years have passed since the discovery of the gas and the beginning of the supply, compared with only three years for the Tamar field.

Most of the gas that will begin flowing tomorrow is for exports to the Jordan Electric Power Company, and in another month also to private customers in Egypt. Commencing in another week, gas will also flow to the Israel Electric Corporation (IEC). The fact that residents near the coastal terminal will be exposed to potential health damage caused by gas, most of which is for export, is arousing criticism from residents in the Hadera region. However, the flow of gas to Jordan and Egypt has been portrayed by the Netanyahu government as an important geopolitical and political interest. In the name of this interest, Prime Minister Benjamin Netanyahu bypassed the authority of the Israel Antitrust Authority director general at the time, and signed in his place, as Minister of the Economy and Industry (after Aryeh Deri, the previous minister, resigned) an exemption for an agreement in restraint of trade for Noble Energy and Delek Group, for the deal to buy the rights to area where the Leviathan reservoir is located.

Netanyahu's signature on the exemption was part of the general arrangement for the gas production sector, referred to as the gas plan. The plan aroused strong opposition at the time, involving the assertion that the state was perpetuating the monopoly of Delek Group and Noble Energy in the Israeli gas market, and forcing electricity consumers to continue paying the excessive gas price that IEC agreed to pay for the gas it was buying from the Tamar reservoir. Netanyahu stood firm against the protest with unqualified support for the plan devised by the professional staff in his government. In an extraordinary step, Netanyahu appeared before the Knesset Economic Committee and the Supreme Court justices to defend the gas plan. They were not impressed by his appearance, and struck down the all-encompassing stability clause in the original plan.

Completion of Leviathan's development is an appropriate time to assess what the gas plan achieved since it went into effect, and where it has failed.

Steinmetz co slams Israel for giving Ishai rights to Cyprus - GLOBES

11 Nov, 2019 18:46
Amiram Barkat

"The government is allowing Delek Group, Noble Energy to humiliate it," says Ohad Schwartz, a director at Nammax Oil & Gas,

"It is embarrassing to see how the Israeli government is allowing Delek Group Ltd. (TASE: DLEKG) and Noble Energy to humiliate it, after having nurtured them and allowed them to take control of both the local and regional natural gas markets," Ohad Schwartz, a director at Nammax Oil & Gas, controlled by Beny Steinmetz, wrote to Ministry of National Infrastructure, Energy, and Water Resources director general Ehud Adiri. Schwartz represents the Israeli companies that are partners in the Yishai prospect and are claiming rights in the Aphrodite natural gas reservoir, most of which is in Cypriot territorial waters. Nammax was a partner in the Aphrodite 2 gas drilling, in which the reservoir was discovered by Noble Energy in 2011. The reservoir also extends into Israeli economic waters.

Israel Electric set to sign new Tamar gas deal - GLOBES

23 Sep, 2019 18:26
Amiram Barkat

The gas price in the new agreement has been lowered to $4.30 per BTU for 18 months.

Israel Electric Corporation (IEC) is close to signing a new agreement with the owners of rights in the Tamar natural gas reservoir. The gas price in the new agreement has been lowered to $4.30 per BTU for 18 months, after which the agreement with IEC will be renegotiated. In effect, the agreement renews the competition between the Tamar and Leviathan reservoirs, because it enables IEC to buy gas from Tamar at a lower price than it obtained from Leviathan. The agreement is also an achievement for the Public Utilities Authority (Electricity), because it improves the terms in comparison with the previous agreement between IEC and Tamar, which the Public Utilities Authority refused to approve.

Leviathan won out over Tamar in a tender published by IEC for the purchase of variable quantities of gas beyond the minimum that it is obligated to buy from Tamar. The holders of rights in the two reservoirs offer the same price - $4.79 per BTU, but IEC management preferred Leviathan to Tamar.

Israel, Egypt mull Sinai LNG plant for Asian exports - GLOBES

28 Jul, 2019 18:40
Amiram Barkat

Building such a facility on the Red Sea shore for liquid natural gas exports would cost $10-15 billion.

Egypt and Israel are considering construction of a liquefaction facility on the shores of the Red Sea in Sinai through which natural gas can be exported to markets in Asia, sources inform "Globes." The initiative is similar to the one previously promoted by Eilat-Ashkelon Pipeline Co. (EAPC), which wanted the facility to be in Israeli territory near Eilat. The idea was shelved due to strong opposition, among other things by the Ministry of Environmental Protection.

This time, the idea is to construct the facility on the Egyptian side of the border, which will make it possible to overcome the opposition to the huge project. In Egypt, the ability to delay such projects for environmental reasons is much more limited. Furthermore, a liquefaction project on Egyptian territory can provide jobs for thousands of Egyptians during the construction stage and hundreds more during the operational stage.

Building the facility on the Red Sea is designed to open the option of exporting Israeli and Egyptian liquefied natural gas (LNG) to the East Asian market: India, China, Japan, South Korea, and other countries, which constitute 70% of the global liquefied gas market. The cost of building a medium-sized land-based liquefaction facility is projected in the $10-15 billion range.

Two bid in Israel's offshore energy licenses tender - GLOBES

15 Jul, 2019 15:50
Amiram Barkat

The Ministry of Energy received only two bids from consortia including from UK companies Cairn and Soco, even though energy majors like ExxonMobil purchased tender documents.

As part of the second round of competitive bids for Israel's offshore natural gas and oil licenses tenders, only two offers have been received from consortia comprising Israeli and international companies.

The two bids were from: a consortium of Israeli company Ratio Oil Exploration (1992) LP (TASE:RATI.L) and two British companies Cairn Energy plc (LSE: CNE) and Soco International plc . (LSE: SIA): and a consortium of Energean Oil & Gas plc (LSE: ENOG; TASE: ENOG) and Israel opportunity.

Minister of National Infrastructure, Energy and Water Resources Yuval Steinitz said, "The arrival of additional European companies to Israel as well as the soon to be connected up Leviathan rig and continued development of the Karish-Tanin fields will lead to the dismantling of the monopoly and strengthening competition in this sector. We are continuing to work to make Israel into a regional energy power."

Delek in talks to sell Tamar rights to advanced training funds - GLOBES

10 Jul, 2019 19:04
Kobi Yeshayahou

The study funds will pay $53 million for the rights to super royalties from the Tamar natural gas field.

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, is taking another step towards divestment from the Tamar natural gas field. The group notified the Tel Aviv Stock Exchange (TASE) today that it is negotiating with the advanced training fund of the schoolteachers and kindergarten teachers for the sale of its rights to super royalties from the reservoir. These rights stem from Delek Group's holding in the Delek Drilling partnership, through which Delek Group holds 22% of the reservoir and 9% of Tamar Petroleum.

If the deal, which is subject to various contingencies, is completed, the advanced training funds, headed by chairman Eyal Gabay, will pay Delek Group $53 million, and the rights to super royalties from the reservoir will be transferred to the funds starting on April 1. The parties agreed that a final examination and accounting would take place at the beginning of 2023, which could either add $2 million to or subtract $2 million from the price.

Delek Group's super royalties from Tamar stood at 1.5% of the revenue from the reservoir as of the end of 2017, and jumped to 6.5% at the beginning of 2018, after Delek Group made back its investment in the reservoir.

Ahead of London IPO, Delek Drilling buys 3 Israeli licenses - GLOBES

Yitzhak Tshuva

20 Mar, 2019 16:39
Amiram Barkat

Two of the licenses are land oil exploration licenses and the third is the Roei offshore gas exploration license.

Delek Drilling LP (TASE: DEDR.L) is acquiring additional oil and gas exploration licenses in preparation for implementation of its plan for splitting off its subsidiary, which will hold the Leviathan and Aphrodite natural gas reservoirs, and which will hold an offering on the London Stock Exchange.

The partnership, controlled by Delek Group Ltd. (TASE: DLEKG), whose controlling shareholder is Yitzhak Tshuva, today announced its entry into three new Israeli licenses: the Roei marine gas exploration license and the Yahel Hadash and Ofek Hadash land exploration licenses.

The Roei deal is based on exercising an option for 20% of the rights that Delek Drilling received in 2012 in lieu of its fee for its mediation role in the deal between the Ratio Oil Exploration (1992) LP (TASE:RATI.L) license holder (it was the Gal exploration permit at the time) and Italian company Edison, the operator for the license. Delek Drilling is now exercising its option to buy 5% more of the rights from Ratio in order to reach a 24.99% share of the rights in the license. Delek Drilling will not pay a substantial amount for the deal, beyond reimbursement for its proportional share of the partners' past expenses.

Natural gas pipeline to Jerusalem completed - GLOBES

21 Mar, 2019 10:36
Daniel Schmil

The 18-inch-diameter, 34-kilometer-long pipeline cost NIS 290 million to build.

Israel Natural Gas Lines Company inaugurated the natural gas pipeline to Jerusalem in a ceremony attended by Minister of National Infrastructures, Energy, and Water Resources Yuval Steinitz and Jerusalem Mayor Moshe Lion. The 18-inch-diameter, 34-kilometer-long pipeline cost NIS 290 million to build.

The pipeline was built in two parts. The western part starts at the Yesodot block valve station near the Soreq Interchange on the Cross Israel Highway. The other part begins at the Mesilot Zion station next to Sha'ar Hagai and ends at the pressure-reducing station at Beit Zayit. The pressure reducing facility itself has not yet been completed, and gas can flow only to enterprises and consumers in the Jerusalem area after it is completed, through the Rotem distribution company. Connection of the first consumers to gas is scheduled for 2020.

ExxonMobil declares large Cyprus gas find - GLOBES

28 Feb, 2019 17:46

Guy Ben Simon

The company believes Block 10 contains 5-8 TCF of gas. Leumi Capital Markets analyst Ella Fried: A regional hub no longer appears unrealistic.

Oil and gas exploration giant ExxonMobil today reported that it had found gas in Block 10 off the shores of Cyprus. The company put the find in the 5-8 TCF range, equivalent to 140-230 BCM of gas. For the sake of comparison, the Tamar gas reservoir contains 280 BCM. ExxonMobil's report is based on previous analysis of its exploratory drilling.

Senior Leumi Capital Markets analyst Ella Fried told "Globes," "This is a dramatic discovery, because the idea of a regional hub no longer appears unrealistic. Combined with the Aphrodite reservoir, the quantity of gas is close to that in Tamar. Furthermore, the US company's presence will probably be less sensitive to regional politics. Where the regional hub aspirations of Egypt and Israel are concerned, the addition of another US concern can only contribute to Israeli gas in the long term. It is very important for Israel to have other concerns here besides European ones like Eni and BP, because the Europeans are more sensitive to a connection with the Persian Gulf states. Other than Noble Energy, not a single US company operates in the Mediterranean Sea."

Leviathan rig foundations reach Israel - GLOBES

27 Jan, 2019 12:22
Sonia Gorodeisky

The Leviathan partners said that the Leviathan project was advancing as planned and on schedule.

After a month-long trip from Texas to Israel, the foundations for the Jacket drilling platform for the Leviathan natural gas reservoir have reached their destination in Israel's territorial waters about 10 kilometers off Israel's shore. A campaign has been waged recently to move the platform further offshore on grounds of alleged environmental damage.

The foundation legs will be placed on the sea bottom in the next week and set in place with huge stakes. Underwater specialists will use a crane ship and other vessels in the work.

Minister of National Infrastructure, Energy, and Water Resources Dr. Yuval Steinitz says that the arrival of the Leviathan platform base marks "the beginning of the last stage in development of the reservoir, the largest natural resource ever discovered in Israel.

IEC seeks Tamar, Leviathan bids for NIS 2b gas deal - GLOBES

3 Dec, 2018 14:19

Sonia Gorodeisky

Israel Electric Corp. is hoping to cut the price of gas by generating competition between the two partnerships.

Israel Electric Corporation (IEC) (TASE: ELEC.B22) has contacted both the Tamar and Leviathan partnerships, both partly owned by Yitzhak Tshuva, to provide bids to supply 2 billion cubic meters (BCM) of gas annually over two years, Delek Drilling LP (TASE: DEDR.L) notified the Tel Aviv Stock Exchange this morning. At current gas prices the deal has an estimate value of about NIS 2 billion.

According to the report, the gas is to be supplied between October 2019 and the end of June 2021. This time scale extends from when gas is due to begin flowing from the Leviathan reservoir to the start of supply of gas from the Karish reservoir, controlled by Greek company Energean Oil & Gas plc (LSE: ENOG; TASE: ENOG).

The aim of IEC is to try and cut the price of natural gas used in the production of electricity but a competitive process to procure amounts of gas above its commitment to the Tamar partners. At the same time, IEC is anyway trying to lower the price of gas in its agreement with the Tamar partners, which amounts to $6 per thermal unit, 33% over the price closed recently with Energean by private electricity producers.

EastMed gas pipeline must overcome major barriers - GLOBES

27 Nov, 2018 12:37

Gabriel Mitchell

Governments may be enthusiastic about the idea of an underwater pipeline linking Israel to Europe, but it is unclear how the financial and engineering challenges can be met.

Israel's Minister of National infrastructures Energy and Water Resources Yuval Steinitz has announced that the governments of Israel, Greece, Cyprus, and Italy have reached an agreement to build a pipeline that would transport Israeli natural gas to the European market. Diplomatic cooperation is a necessary component to realizing large-scale, multinational energy projects, but there is a point in every process where politicians need to step aside and make room for the entrepreneurs, corporations, and engineers who will determine the commercial and technical feasibility of this vision.

Israel, Cyprus, and Greece have demonstrated an enduring interest in collaborating on an ambitious undersea pipeline that would deliver Israeli and Cypriot gas to Europe. Since 2011, heads of state from these three East Mediterranean states have met on a regular basis and signed MOUs pledging future energy cooperation (in addition to other areas), if and when the climate is right. Italy's deepening participation in these dialogues only adds to the general sense of enthusiasm surrounding the appropriately named "EastMed pipeline".

Neither consensus between multiple governments nor the European Union's commitment of $100 million in a feasibility study - a number that sounds significant, but in comparison to the estimated $7 billion pipeline costs, is a drop in the ocean - promises that this vision will become reality. After all, the average Israeli family invests a larger percentage as a down payment for an apartment.