IO Monthly Update - March 2014
  Israel Opportunity Latest Announcements

Israel Opportunity releases Q4 financial statement for 2013
On March 19, 2014 the Partnership published the Financial Statements as of December 31, 2013.
The Petroluem Council recommended to aprove the request to transfer 10% of the participation rights in the offshore license "Oz",
The Petroluem Council recommended to aprove the request to transfer 10% of the participation rights in the offshore license "Oz", from Frendum Investments Limited to the Partnership.


 
  Industry Updates
 
Israel revises Leviathan lease terms 
Delek announced that the Petroleum Commissioner from the Ministry of National Infrastructures, Energy and Water Resources, granted two title deeds in lieu of offshore licenses 349/Rachel and 350/Amit licenses. Both encompass the giant deepwater Leviathan gas discovery. Within six months, the partners must submit a development plan that includes at least 540 bcm (20 tcf) for Israel’s domestic market, with commercial production to start 48 months from lease grant date.

Woodside deal with Leviathan partners has not yet been concluded
Last week Woodside Petroleum confirmed that it has not reached agreement with the Leviathan joint venturers on joining the development project. An earlier memorandum of understanding targeted a decision by March 27. According to 'Globes' magazine, the taxation question over the exported gas has not been solved. Woodside Petroleum objects to the formula for taxing exported gas recommended by the Ministry of Finance in the draft legislation, and decided to postpone the signature until that question was resolved. Woodside Petroleum Ltd. and the Israel Tax Authority are expected to sign an agreement after Passover.

10 bids for Leviathan export tender to Turkey
According to Globes magazine, more than ten bids were submitted in the tender by the partners in Leviathan, for the export of natural gas to Turkey. The bids for the purchase of natural gas ranged from 7 billion cubic meters (BCM) a year to 10 BCM, amounts that could generate $22-31 billion in revenue, assuming a 15-year gas supply contract at $6 per million British Thermal Units (mmBTU), the price of natural gas in Israel's domestic market. Bidders include Zorlu Group and a joint bid by Turcas Petrol AS and German electricity utility RWE.


 Regulatory Developments

The Israeli Oil and Gas exploration companies received a 45 days extension to submit the guarantees 
The Petroleum Commissioner at the Ministry of National Infrastructures, Energy and Water Resources, announced that a 45 days extension will be provided to the exploration companies to submit the new guarantees. This extension is provided in order to provide additional time for the companies to submit the guarantees and continue internal discussions at the Ministry.   








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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. Please note that the above information is as of March 31 2014.