Israel to unblock giant gas project
TEL AVIV, June 25, 2015 – Israel’s security cabinet is set to approve a plan to allow US company Noble Energy and Israel’s Delek Group to proceed with the development of the super-giant Leviathan gasfield.
Operations of the US-Israeli energy partners have been in limbo since the venture was deemed a monopoly by Israel’s anti-trust regulator in December.
The decision left the companies facing the prospect of a full asset sale and jeopardised long-term export agreements with Egypt and Jordan worth billions.
In response, Noble halted investments in the country.
Leviathan, which holds 623 bcm (22 tcf of gas), could be brought on line in three years if development resumes.
The proposed deal would require Delek to sell its 45.32-percent stake in the 283-bcm (10-tcf) Tamar gasfield, while Noble would be forced to reduce its stake from 36 percent to 25 percent.
The two companies would also be forced to relinquish stakes in the smaller Tanin and Karish fields.
The cabinet will convene on Thursday to decide on the proposal, which it deems a diplomatic and security issue.