Gulf Oil and Gas accountACCOUNT

Noble and Delek Will Have to Sell Some Reserves

Source: Reuters 2/3/2015, Location: Middle East

Israel's energy minister said natural gas companies operating offshore Israel will have to sell some of their reserves to avoid being deemed a monopoly, reinforcing a stance against control of the assets by Noble Energy and Delek Group.

His comments were the most explicit to be in made public since the country's antitrust authority said in December the U.S.-Israeli partners who discovered two large natural gas fields in the eastern Mediterranean may constitute a monopoly.

The regulator's comments had jolted the sector and the energy companies said they were holding off further investment until matters became more clear, throwing off development timelines and endangering major export deals.

Energy Minister Silvan Shalom said the government is working to find a balance between increasing competition and making it worthwhile for companies to ensure the offshore Tamar and Leviathan fields are developed.

Texas-based Noble and Israel's Delek are the main shareholders in both fields, whose discovery in 2009 and 2010 turned import-dependent Israel into a potential energy exporter.

Part of the decision will be that the gas companies will have to give up some of the reserves they have. What can you do? It will happen," Shalom told an energy conference in Tel Aviv. "Sadly, I don't see a lot of new players waiting to come here.

" He said part of the reason that large foreign companies are hesitant to invest in Israel is because they already have major operations in Arab states that do not have good ties with Israel.

"The Israeli market is a small market. And the interests they have in Saudi Arabia and the Persian Gulf states, they are much bigger and stronger than what they have here. So to bring them here as competitors to other groups is not simple," he said.

Noble and Delek have already agreed to sell their licenses to two smaller gas fields nearby. Officials have said other options being discussed are splitting up the consortium so the partners sell gas in competition, or even to sell stakes in either Tamar or Leviathan.

Acquisitions and Divestitures News in Israel >>

Iran >>  9/15/2019 - In the course of the ceremony held for concluding the contract for development of Balaal Gas Field, the Managing Director of Petropars Group stated, ď...
Somalia >>  9/13/2019 - Sterling Energy has announced that the Government of the Republic of Somaliland has granted a continued extension to the current period of the Odewayn...

Brazil >>  9/12/2019 - GeoPark has announced the expansion of its portfolio with four new exploration blocks in the Reconcavo and Potiguar basins in Brazil. ...
Indonesia >>  9/12/2019 - Lion Energy previously announced on December 12, 2018 that it entered into a conditional sale and purchase agreement ('SPA') with Gulf Petroleum Inves...

Brazil >>  9/11/2019 - Petro-Victory Energy Corp. is delighted to announce that following successful participation and bidding in the Agencia Nacional do Petroleo Gas Natura...
Brazil >>  9/10/2019 - The ANP held the public session of the 1st Cycle of the Permanent Offer, which was attended by the Minister of Mines and Energy, Bento Albuquerque, AN...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Israel Oil & Gas 1 >>  2 | 3 | 4 |

More News

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.