Friday, 14 August 2015
ISRAEL SCORES DEAL TO DEVELOP LEVIATHAN FIELD, CONFIRMS CONDITIONS
Israeli Prime Minister Benjamin Netanyahu said on Thursday that the country signed a deal withNoble Energy and Delek Group for the development of the Leviathan gas field.
US-based Noble and Israel’s Delek have been working together for years, producing gas from the Tamar field off the coast of Israel since 2013.
As anticipated by Natural Gas Europe in July, the deal allows the two companies to keep ownership of the largest offshore field, Leviathan, while forcing them to sell off other assets. Delek Group will have to divest its holdings in the Tamar, Karish and Tanin gas fields within six years; Noble Energy will have to gradually reduce its stake in Tamar to no more than 25% within that same time frame. During these six years, prices for natural gas will be regulated.
Despite the internal debate about the price for domestic consumers, Netanyahu announced the deal saying that the deal will be beneficial for the Israeli population.
“I thank Minister Steinitz and this team for reaching an agreement that will bring Israel's citizens hundreds of billions of shekels in the coming years, hundreds of billions of shekels. This money will serve us in health, education and social welfare. The gas that will flow to Israel will also lower the cost of living because gas is an energy that is significantly cheaper than others; therefore, this will help us lower the cost of living. It costs less to work with gas. Prices will be lower” he said, as reported by the government’s website.