IO Monthly Update - June 2015
Israel Opportunity's Latest Announcements
- Israel Opportunity appoints new directors
On June 29th, 2015, Israel Opportunity held an assembly of unit holders, which appointed three external directors: Dr. Yaakov Mimran, who previously served as Petroleum Commissioner in the Ministry of National Infrastructures, Energy and Water Resources, and as Head of the Geological Survey of Israel; Mr. Yehuda Saban, who served as Vice President of Economy and Regulation in Delek Drilling and Avner Oil Exploration and as Referent of Energy in the Budget Department of the Ministry of Finance; and Ms. Moran Tzur, who previously served as Investor Relations Manager at Delek Drilling and Avner Oil Exploration. In addition, the assembly has taken decisions regarding capital consolidation, insurance and indemnity.
- Israel-Cyprus strategic dialogue launched
During a bilateral meeting held in Jerusalem on June 15th, 2015, the President of Cyprus, Nicos Anastasiades and Israeli Prime Minister, Benjamin Netanyahu, launched a strategic dialogue on energy, with the initial aim of concluding a unitization agreement regulating the exploitation of cross-border gas in their respective Exclusive Economic Zones, such as Israel Opportunity's Pelagic Licenses, including "Ishai" license that part of Cyprus' "Aphrodite" structure is in its area. According to Cyprus Mail, the two countries are also examining further long-term energy collaboration in the form of potentially merging pipelines from Israeli and Cypriot offshore gas fields to Egypt.
- Gas agreement to be brought to government's approval
The outline gas agreement between Delek and Noble Energy and the State of Israel was released for publication and is expected to be brought to government's approval this month. According to the outline, Karish and Tanin gas fields will be sold to a third player within 14 months; Delek will sell all its holdings in Tamar reservoir within six years, and Noble Energy will dilute its holding from 36% to 25%; Leviathan field may be opened for competition from ten years after the reservoir is developed; the partners will be able to export gas to Egypt from Tamar; and more.
- Block 12 partners file a declaration of commercial discovery
According to reports by Delek Drilling and Avner Oil Exploration, the partners in Block 12 have filed a declaration of commercial discovery in "Aphrodite" reservoir to the government of Cyprus. In addition, a development and production plan for Block 12 was submitted. According to Bizportal, the partners intend to establish a floating production facility with approximate production capacity of 800 MMcf per day, and gas transmission pipelines to Cyprus and Egypt.
- Egypt signs $2 billion exploration deal with Eni
According to Reuters, a press release by Egypt’s Oil Minister says Italian oil major Eni signed an energy exploration and drilling deal with Egypt worth around $2 billion over 4 years. Eni is expected to invest in exploration in Sinai and to drill five new wells in northern Port Said, among other operations. Eni, the biggest foreign oil major in Africa in terms of volumes, has been present in Egypt since 1954 and produces around 210,000 barrels of oil equivalent per day.
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