Israeli Gas: Much Progress Ahead of UOG 2015 Meet this November

Hope that 'unofficial offer' will help resolve matters

More recently, however, there has been some progress. At the 2015 Offshore Technology Conference in Houston earlier this month, Rigzone learned from an official of the Israeli government's Economic Mission to the U.S. Southern Region that "the word" within the Israeli Ministry of Economy is that the issue would be resolved within a couple of months. And very recently a source – who did not want to be named but who follows the Israeli gas market – told us that the government has made an "unofficial offer" to Delek and Noble that is more lenient than its previous proposals. This offer demands that Delek sells its holdings in the Tamar field over a six-year period and that Noble also reduce its holdings in Tamar but that Leviathan's export quota would be increased, with exports being expedited.

Hopefully, the matter will be resolved to all parties' satisfaction by the time of the next UOG conference in Tel Aviv this November.

Certainly, Joshua Beagelman – UOG's chief operating officer – is optimistic, pointing out that the appointment of Israel's new Energy Minister Yuval Steinitz in mid-May "could be very positive".

Beagelman told us that the next conference will focus on "shaping the future for Israel and the region" in terms of the country's burgeoning oil and gas industry.

"Delegates can expect to network with the key players in the region, international energy executives along with governmental figures to understand more on the opportunities and challenges for the upstream and midstream sector of the oil and gas industry. With a number of agreements over the past year in the East Mediterranean region, UOG 2015 will be the premier platform to take advantage of one of the most exciting emerging markets in the industry," he said.

UOG 2015 takes place at the InterContinental David Tel Aviv Hotel between Nov. 17 and 19, 2015.

Readers interested in finding out more should take a look at UOG's video here:

 



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Francis Kwiatkowski  |  May 18, 2015
Delek/Noble Energy already had signed production agreements with the Israeli government for Leviathan, but the government has decided to take a bigger piece of the pie a la Venezuela/Ecuador etc..., by changing the terms after the fact. The claim that Delek /Noble are a monopoly is quite true, but in fairness they operate the ONLY field in Israel(Tamar) currently producing and have invested over 1.2B already in Leviathan. There is no competition because of government regulatory issues and because there are only two fields worth developing, and Delek/Noble signed agreements with the government to develop them. Delek/Noble took a big chance that could possibly come back to haunt them.