IO Monthly Update - January+February 2017
Israel Opportunity's Latest Announcements
- Ishai License's validity extended
On January 26th, 2017, the Petroleum Commissioner has informed the partners in Ishai license of an extension of the license's validity until November 18th, 2017. On November 19th, 2015, the "Aphrodite" gas field that is partly located within the "Ishai" License was declared by the Petroleum Commissioner a Discovery; as such term is defined by the Petroleum Law. Ishai license partners and holding are as follows: The Partnership – 21%; Nammax Oil & Gas Limited - 63%; Eden Energy Ltd. (formerly Frendum Investments Ltd.) - 11%; Petroleum Services Holding AS - 5%.
- Leviathan gas field FID taken
According to announcements by Leviathan partners Delek and Avner to the Tel Aviv Stock Exchange on February 23rd, 2017, Leviathan operator Noble Energy Inc. has made a final commitment towards the $3.75 billion first stage development of the field. The commitment comes two months overdue because of Noble's desire to ensure that the contract to supply 3 billion cubic meters (BCM) of gas to Jordan over 15 years would go ahead. According to Globes Magazine, the development will include four production wells, a gas handling platform, and pipeline to Israel's coast, capable of providing 12 BCM annually for Israel, Jordan and the Palestinian Authority.
- Kerogen Capital to invest US$50 in Energean
According to Globes Magazine on February 15th, 2017, Energean Oil & Gas stands to gain a US$50 million investment from for its Karish and Tanin gas fields. The initial investment from Kerogen will be given to Energean subsidiary Energean Israel, ahead of the planned $1.3 billion development of the company’s two 100% owned fields. Kerogen’s investment is subject to approval by the Israeli government, after which Kerogen will own a 50% interest in Energean Israel with Energean holding the balance. It is intended that Roy Franklin OBE, Kerogen executive board member, will become non-executive chairman of Energean Israel.
- Ministry of Energy postpones deadline for proposals in the Offshore Bid Round
In a conference held on February 9th, 2017, by the Ministry of Energy, the Minister of Energy and ministry officials presented the principles of the offshore bid round for receiving exploration licenses in Israel's exclusive economic zone and its timetable, as well as the fiscal terms and the geological background for assessing the potential of the new exploration blocks. During the conference, the Minister of Energy, Dr. Yuval Steinitz announced that due to queries from potential bidders and in light of the interest, both from within Israel and abroad, the ministry has decided to postpone the deadline for submitting proposals in order to allow for additional companies to submit proposals. The new deadline for submission is July 10th, 2017.
- Lebanon re-launches first oil and gas licensing round
According Reuters on January 27th, 2017, Lebanon has re-launched its first oil and gas exploration and production licensing round, for five offshore blocks (1,4,8,9 and 10), after a three-year delay. In 2013, 46 companies qualified to take part in bidding for oil and gas tenders in the country, but the licensing process was put on hold due to political paralysis. These companies will remain qualified to bid and a second pre-qualification round for any more companies interested in exploration and production contracts would run between February 2nd and March 31st, 2017. The qualifying companies will be announced on April 13th.
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