IO Monthly Update - December 2016
Israel Opportunity's Latest Announcements
- Oz License's validity extended
On December 19th, 2016, the Petroleum Commissioner has informed the partners in Oz license on the approval of the partners' request for extension of validity of the license until December 19th, 2017, subject to changes in the license work program, including, inter alia, the submission of a full environmental survey in accordance with the ministry guidelines by March 1st, 2017 and spud date by December 18th, 2017. Oz license partners and holding are as follows: The Partnership – 41.5%*; Lapidoth-Heletz Limited Partnership - 41.5%; Coleridge Gas & Oil Exploration Israel L.P. - 12%; Caspian Drilling Company Limited - 5%.
*Subject to the approval of the Partnership's request for transfer of rights from Frendum Investment Ltd and Placida Investments Limited to the Partnership. To date, 10% are registered in the Petroleum Register.
- "Karish" and "Tanin" gas fields sale to Energean approved
According to Globes Magazine, on December 6th, 2016, the Petroleum Council recommended to the petroleum commissioner to approve the deal for selling Karish and Tanin natural gas fields to the Greek company Energean. The deal followed the natural gas plan requiring Noble Energy and Delek to sell the two reservoirs, which contain 60 BCM of gas. Energean says that within six months it will present Israel's Ministry of National Infrastructures, Energy and Water Resources with its plan to develop the fields.
- Eni to Sell Egyptian Gas Field Stake to Rosneft
According to publications in the Lebanese media on July 9th, 2016, Lebanon is expected to offer all of its 10 offshore blocks for bidding to international oil companies, following an agreement between two main political parties. On March 2013 Lebanon started a pre-qualification procedure for gas companies to enter the country. 12 international operators have passed the early stage of the procedure, together with 34 non operators, but regulatory and political instability led to the postponement. It is reasonable to assume that the recent findings of gas reserves in Egypt, as well as the reconciliation agreement between Israel and Turkey, have caused the Lebanese Ministry of Energy to accelerate the bidding process.
- Cyprus selects Eni, Total and Exxon for negotiations contracts for exploration in offshore exploration blocks 6, 8, 10
According to the announcement of the Cypriot Minister of Energy, Commerce, Industry and Tourism on December 21th, 2016, the Council of Ministers’ selected applicants for negotiations on the terms and provisions of the Exploration and Production Sharing Contracts, in the 3rd Licensing round for offshore exploration of Blocks 6, 8 and 10. Block 6 was granted to Eni Cyprus/Total E&P Cyprus; Block 8 to Eni Cyprus; and Block 10 was granted to ExxonMobil Exploration and Production Cyprus (Offshore)/Qatar Petroleum international Upstream. A team led by the Minister of Energy, Commerce, Industry and Tourism and the Minister of Finance was appointed to negotiate contract terms with the successful applicants. In case negotiations are successful and provided that the agreed Contract per individual Block is approved by the Council of Ministers, the government will grant hydrocarbon exploration licenses. Otherwise, runner-up applicants will be invited to negotiations.
The materials and information included in this newsletter are provided as a service to you by Israel Opportunity Oil & Gas Exploration Ltd. ("the Company") and the Company or any of its subsidiaries are not responsible for the accuracy and completeness of information provided herein. The information provided herein is not advice of any kind, and should not be treated as such. The Company will not be liable to you in respect of any special, indirect or consequential loss or damage with respect to relying on the information herein. If you wish to be omitted from the distribution list please send an email to firstname.lastname@example.org