Delek updates offshore Israel gas negotiations

Offshore staff

TEL AVIV, Israel – Delek Group has confirmed press reports in Israel of a proposed offshore farm-in by Australia’s Woodside Energy (WPL:AU). This involves the Leviathan deepwater gas project.

This and other offers received, Delek points out, are subject to due diligence and additional information that provide a basis for negotiation.

The company has also confirmed that the offshore Tamar gas project partners have signed a take-or-pay agreement with Dorad Energy to supply up to 11.2 bcm (395 bcf) over a 16-year period, with an option to increase to up to 13.2 bcm (466 bcf). Estimated cumulative revenues are $3.5 billion.

Delek adds that the gas price will be linked to electricity production rates as determined periodically by Israel’s Public Utility and Electricity Authority. Supply of gas will start once the Tamar reservoir is onstream.

10/22/2012

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