IO Monthly Update - July 2018
Israel Opportunity's Latest Announcements
- Petroleum Commissioner Approved an Update to the Work Plan of the "Hatrurim" License
On 2 August 2018, the Petroleum Commissioner at the Ministry of Energy (the "Commissioner") informed the partners to the Hatrurim license, that he has approved a revised work plan, following an application by the partners. The work plan's schedule now includes signing an agreement with a drilling contractor and transferring it to the Commissioner by 25 October 2018, and spud date by 25 December 2018. The Commissioner also required the operator of the license to provide a proof indicating that it has managed to raise the necessary purported funding, by 20 October 2018, after which he will consider postponement of the work plan's authorized timetable. The expiry date of the license has not been changed. The Partnership's interest in the license is 25%.
- Owners of the Shared Aphrodite Field Submit Development Plan to the Cypriot Government, Ignoring Israel's Share
The Marker reported on 24 July 2018 that Delek Group and Noble Energy, who together with Shell are the owners of the Aphrodite field which is located mostly in Cypriot waters and expands into Israel's economic waters, have submitted a development plan for the approval of the Cypriot government, without coordinating with the Israeli government. As the talks between the Israeli and Cypriot governments encounter hardships in reaching understandings that will allow its development, the owners of the Cypriot side are already working on promoting gas export and marketing agreements. According to reports, Shell has initiated contacts for the purchase of gas from the Aphrodite and Leviathan fields in an amount of USD 25 billion over one decade, to be delivered to its gas liquification plant located in Egypt. A senior official in Delek was quoted saying that "we will do what the Cypriot government tells us, not the Israeli." According to estimations, the proceedings from gas sales from the Israeli side could amount to over 3 billion New Israeli Shekels in taxes and royalties.
- Italian Edison to Begin Drilling in its Egyptian Concessions, Egyptian Minister Says
According to Energy Egypt report of 29 July 2018, Egyptian Petroleum Minister Tarek El-Molla has said that the Italian Energy company Edison will begin drilling exploratory wells at its North East Hapy and Thekah concessions in 2H2019. According to the report, the company’s studies of the concessions show geological structures that indicate there is a “good chance” the areas hold natural gas reserves.
- The "Adiri Commission" has Published Its Interim Report, Now Open for Public Submissions
The Commission for periodical examination of regulation regarding Israeli natural gas exportation and domestic energy needs, headed by Director of the Israeli Ministry of Energy Udi Adiri, has published its interim report. Hopes among investors are that the Adiri Commission shall make significant changes in policy, in comparison to the "Zemah Commission's" conclusions as adopted by the government in 2013, regarding two subjects central to the development of the Israeli energy sector: (1) the quotas allowed for export from each gas field; and (2) the obligation to connect gas fields discovered offshore Israel to the Israeli national grid. The Commission has now opened a procedure allowing the public to submit position papers for its consideration.
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