IO Monthly Update - November 2016
Industry Updates
  • Energy Ministry opens Israel’s EEZ for new gas exploration
National Infrastructure, Energy and Water Minister, Dr. Yuval Steinitz declared on November 15th, 2016, that Israel’s Eastern Mediterranean is open for new gas exploration. 24 license zones, each spanning a maximum area of 400 square kilometers, are now available for Gas companies interested in exploring Israel’s waters. All proposals must be submitted to the Energy Ministry by April 21st, and the winners will be chosen by July 15th.
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  • Delek, Avner and Ratio complete Leviathan development finance
Delek Drilling and Avner Oil and Gas announced on November 27th, 2016, that they had signed a binding agreement with HSBC Bank and JP Morgan Limited to finance their shares of the stage 1 development of Leviathan. The finance will amount to $1.5-1.75 billion. Leviathan's third partner, Ratio Oil Exploration has also completed raising finance for its share of the development of the reservoir, according to an announcement from December 4th, 2016. The partnership signed an agreement for senior bank finance amounting to $250 million, with an option for a further $150 million. The participating banks are HSBC and BNP Paribas.
  • Leviathan gas deals signed
The Leviathan partners announced on December 1st, 2016 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. This deal follows the signing of a natural gas supply agreement from Leviathan to Paz Oil Company Ltd on November 24th, 2016. Under the terms of the agreement, the Leviathan partners will supply Paz Ashdod Oil Refinery with 3.12 BCM of natural gas over a maximum period of 15 years or until the Paz unit will end its need for quantities of gas.

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