The Israeli government came to a decision to move forward in the development and expansion of natural gas fields off the country’s coast.
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Prime Minister Netanyahu. From GPO. |
"Today (25 June) the Security Cabinet unanimously approved accelerating the development and expansion of the natural gas fields that have been discovered off Israel's coasts. This was in consideration of the State of Israel's security needs and its foreign relations. We are advancing a realistic solution that will bring gas to the Israeli economy and not a populist solution that will leave the gas deep underground. I have already seen enough countries that succumbed to populism and their gas has remained underground or in the depths of the sea. This outline breaks up the monopoly. In the coming decades, it will add hundreds of millions of shekels to education, social welfare and health for all Israeli citizens. After years of discussion and debate, I am certain that this is the prudent, correct and necessary solution for all citizens of the state," Israel Prime Minister Benjamin Netanyahu said.
Certain arrangements were made exempt from the Israeli Restrictive Trade Practices Law 1988 (IRTPL) on 25 June, followed by a decision by the government of Israel to assume the authority of the Minister of Economy to exercise rights under the IRTPL on 28 June.
“It is expected that the Israeli government will publish for a public hearing a comprehensive framework that will address and clarify many of the outstanding regulatory issues facing the company and its partners in developing their offshore assets,” Noble Energy said in an 8-K filing. “The publication of the framework is only an initial stage and a final decision is subject to the outcome of the public hearing and any legal challenges that may be brought against the decision in the Israeli courts. Therefore, there can be no assurances as to when or if the decision will be finalized or as to the terms thereof if finalized.”
Noble Energy has been struggling with the Israeli government, and in its 4Q and full year 2014 earning call made in February 2015, announced the company was suspending further investments in the expansion of Tamar, and initial development of Leviathan until regulatory issues were resolved
Noble’s main opponent of its Leviathan plans was Director General of the Israeli Antitrust Authority David Gilo, who announced his resignation on 25 May and is set to end his reign this summer in August 2015.
Leviathan is Noble’s largest exploration discovery in the company’s history, with an estimated 19 Tcf of gross natural gas resources, representing the largest deepwater natural gas discovery in the world in over a decade. Noble had anticipated that the first phase of development at Leviathan to be approved in 2014.
Tamar went into production in 2013, and as of that time, was estimated to contain gross mean resources of 10 Tcf of natural gas. It was first discovered in 2009.
Noble operates Leviathan with 39.66% interest. Partners include Delek Drilling (22.67%), Avner (22.67%), and Ratio Oil Exploration (15%).
Noble also operates Tamar with 36%. Its partners include Isramco Negev 2 LP (28.75%), Delek Drilling (15.625%), Avner (15.625%) and Dor Gas Exploration (4%).
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