Greece’s Energean inks deals to supply Israeli gas to Dalia and Or - NEW EUROPE

May 31, 2017 09:00
New Europe Online/KG

Dalia and Or will purchase part of their gas requirements from Karish-Tanin to operate the Dalia power plant as well as future power plants to be built by Or

Greece’s Energean Oil & Gas announced on May 30 that its subsidiary Energean Israel has signed with Dalia Power Energies and its sister company – Or Power Energies, two agreements for the supply of natural gas from the Karish and Tanin fields, offshore Israel.

Dalia and Or will purchase part of their gas requirements from Karish-Tanin to operate the Dalia power plant, the largest private power station in Tzafit, south-central Israel, as well as future power plants to be built by Or, Energean said.

UPDATE 1-Greece's Energean to supply 23 bcm of gas to Israeli power stations - REUTERS

Sun May 28, 2017 | 2:13am EDT
Reporting by Ari Rabinovitch; Editing by Tova Cohen

Greece's Energean said on Sunday it signed contracts to supply up to 23 billion cubic meters of natural gas to private Israeli power stations from the Tanin and Karish gas fields offshore Israel.

The deals were signed with Dalia Power, which operates Israel's largest private power station, and Or Power, which is planning to build new power plants, Energean said in a statement.

Financial details of the deals were not disclosed.

Energean, a private exploration and production company in the eastern Mediterranean, bought the Karish and Tanin licenses from Israel's Delek Group in December 2016 for an upfront cost of $40 million and $108.5 million in contingent payments.

Leviathan off the starting blocks - IN CYPRUS / CYPRUS WEEKLY

March 5, 2017
Charles Ellinas

Phase 1A of the Leviathan gasfield is finally off the starting blocks. Noble Energy and its partners reached FID on 23 February for Phase 1A, which involves the production of 12bcm/yr starting end of 2019. This can only be seen as positive news for the Leviathan partners and the Israeli gas market.

Leviathan was discovered in 2010 and it is estimated to hold 622bcm of recoverable gross natural gas resources. It is owned by Noble Energy with 39.66%, Delek Drilling with 22.67%, Avner with 22.67% and Ratio with 15%.

In the following, I analyse the FID decision, describe the deal and its potential impact on Energean and discuss the implications on East Med gas.

'Cyprus deal could speed up Turkey energy project' - ARUTZ SHEVA 7 / ISRAEL NATIONAL NEWS

AFP, 05/03/17 12:10
A Cyprus peace deal would speed up Israel's project to provide gas to Turkey, the new Israeli ambassador to Ankara said Wednesday.

Eitan Naeh became Israel's first ambassador in Turkey in December when relations resumed in the summer after a six-year diplomatic rift.

"We think that the solution to the Cyprus problem can speed up the energy project," Naeh said, adding it was a "win-win" for everyone.

"A Cyprus solution will make life easier for all," he told reporters during a briefing in Ankara.

Naeh was referring to exporting gas from the Leviathan field off its coast, discovered in 2010 and set to begin production in 2019.

The best way for gas to be exported between Turkey and Israel would be a pipeline via the territorial waters of Cyprus.

Development of Leviathan Field to Produce Natural Gas by End of 2019 - DELEK GROUP

Tel Aviv, December 12, 2016

Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) provides below an Immediate Report published by each of Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership ("the Partnerships") concerning the decisions taken for development of the Leviathan Field in order to produce natural gas by the end of 2019.

Pursuant to what was stated in the Partnerships' Annual Reports dated December 31, 2015 that were published on March 28, 2016 ("the Annual Reports") concerning the updated development plan for the Leviathan Field ("the Development Plan"), and having received the regulatory approvals and progress in the technical agreements concerning development of the Leviathan Field, including approval of the Development Plan by the Petroleum Commissioner at the Ministry of National Infrastructures, Energy and Water Resources, as stated in the Immediate Report dated June 2, 2016, 

entering into an agreement to receive Front End Engineering Design (FEED) services for the production platform as approved in the Development Plan, as stated in the Immediate Report dated June 22, 2016, 

Development of Leviathan - IN CYPRUS / CYPRUS WEEKLY

December 4, 2016
By Charles Ellinas

Delek announced at the Tel Aviv Stock Exchange that it had signed a commitment letter securing up to $1.75 billion in financing from JPMorgan and HSBC for Phase 1A of the Leviathan development.

Ratio Oil sold new debt and equity earlier this year, raising about a third of its $600-million share of the project. Noble Energy has only raised part of its portion of the financing, expected to be about $1.6bn, and is looking to sell 10% of its Leviathan holding to support this.

The total estimated Phase 1A development cost is $4bn.

This, coupled with changes in Turkey’s energy strategy to diversify away from gas, may have profound effects on the future of East Med gas.

Leviathan partners sign $2b gas deal - GLOBES

1 Dec, 2016 11:10

Nati Yefet

The latest deal is with Or Energies, which will buy 8.8 billion cubic meters of gas over 20 years.

The Leviathan partners notified the Tel Aviv Stock Exchange this morning that they have signed a $2 billion deal to sell 8.8 billion cubic meters of gas to Or Energies over 20 years. The gas will be used to operate the power station that Or Energy plans to build.

The Leviathan partners Noble Energy Inc.(NYSE: NBL) (39.66%), Delek Group Ltd. (TASE:DLEKG) units Avner Oil and Gas LP (TASE:AVNR.L) and Delek Drilling LP (TASE: DEDR.L) (22.67% each) and Ratio Oil Exploration (1992) LP (TASE:RATI.L) (15%) recently announced that they had signed financing deals for the giant offshore gas field. The partners have also recently signed a range of deals to supply gas including to Paz Oil Company Ltd.(TASE:PZOL), Edeltech, the IPM power station in Beer Tuvia and the Jordanian electyricity company NEPCO.