IO Monthly Update - January 2016
Israel Opportunity's Latest Announcements
  • Israel Opportunity increases holdings in Pelagic Licenses
On January 5th, 2015, the Partnership has reached an addendum to the settlement agreement with the partners in "Pelagic" Licenses, Nammax, Frendum and Eden (holder of controlling interest in Frendum), and an agreement with Nammax, whereby, inter alia, the Partnership will increase its holdings in the mentioned licenses to 21%. From the date of signing the addendum to the settlement agreement, all rights, liabilities and obligations of the partners in "Pelagic" Licenses will be based on the percentage of their holdings as follows: The Partnership – 21%; Nammax Oil & Gas Limited – 63%; Frendum Investments Limited – 11%; Petroleum Services Holdings AS (formerly AGR Petroleum Services Holdings AS) – 5%.
Industry Updates
  • Resources report published for Daniel License
On January 17th, 2016, a resources report was released by Isramco and Modiin Energy for Daniel licenses. According to the report by Netherland, Sewell & Associates, Inc., the best estimate for the Og prospect in the Daniel East license is a prospective reservoir of 1.1 TCF of gas. In addition, the report estimates, at a best estimate, an aggregate prospective reservoir of 7.8 TCF of gas in Daniel West license, which contains several blocks. The estimate for the Og prospect is with a 38-43% probability of finding gas, while in the Daniel West license the probability ranges from 24% to 57% depending on the prospect.
  • Leviathan partners sign gas contract with Edeltech
According to announcements by Leviathan partners on January 31st, 2016, a first contract for the sale of gas from the reservoir was signed with Edeltech, Israel's largest private power producer, for the supply of 6 BCM of natural gas over 18 years. The $1.3 billion worth gas will be supplied to Edeltech's two new power stations, Tamar and Solad, which will join the three gas-fuelled power stations built by companies owned by Edeltech and Turkish company Zorlu.
  • Israeli, Cypriot and Greek joint committee for gas formatted
According to Globes Magazine, the Ministers of Energy of Israel, Cyprus and Greece announced the formation of a joint committee to consider cooperation in exports of Israeli and Cypriot gas by way of Greece. At a trilateral meeting in Cyprus last week, PM Netanyahu, PM of Greece and the president of Cyprus decided to establish the committee to consider different ways of exporting Israeli and Cypriot gas to Europe. One way under consideration is construction of a direct pipeline from the gas fields in Israeli and Cypriot waters to Greece, from where gas can be exported to the European Union.
Regional Events
  • Egypt announces auction for 11 blocks
According to announcements by the head of the state-owned Egyptian company, Egas, on January 19th, 2016, Egypt will hold an international tender for 11 offshore oil and natural gas blocks during the second half of fiscal year 2015-2016, for exploration purposes. The blocks that will be auctioned are located in the Mediterranean and the Nile Delta. Egypt will also sign three new contracts for Mediterranean Sea development, worth a total of $500m, and it expects to start production of roughly 760mn ft³/day of gas from new projects and development wells.



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