An Israeli government panel recommended that Delek Group Ltd. and Noble Energy Inc. sell part of their stakes in the offshore Tamar gas field to increase competition in the industry, a state official said.
The panel is seeking agreement from the companies to avert legal proceedings that would delay the larger Leviathan Field, said the official, who asked not to be identified as the matter is sensitive. Noble executives arrive in Israel next week, he said. Leviathan’s development is crucial for the economy and delays would threaten gas supply deals with Jordan and Egypt, the official said.
The committee is seeking to set out guidelines for government gas policy and resolve a dispute between the country and the two energy companies after Antitrust Commissioner David Gilo said in December he was studying designating them a cartel. Development of Leviathan, 2010’s largest gas find, has stalled since then.
The panel’s other recommendations are that Delek and Noble sell their entire holdings in the Karish and Tanin fields, they market Leviathan gas separately, and that the price of gas sold in Israel be capped for several years, the official said.
Leviathan and the smaller Tamar site hold an estimated 32 Tcf of gas, according to Noble. That’s enough to supply Israel’s needs for decades as well as allow for exports.
The Tamar Field started production in March 2013.
Gas Deals
Noble holds 39.66% of Leviathan, Delek units hold 45.34% and Ratio Oil Exploration 1992 LP has 15%, according to company filings. Noble has 36% of Tamar, while Delek units have 31.25%. Isramco Negev 2 LP also has a stake in Tamar.
Noble and Delek signed letters of intent to sell gas to Egypt and Jordan but talks halted awaiting the policy decision.
A spokeswoman for Noble and Elad Cohen, a spokesman for Delek Group units Delek Drilling-LP and Avner Oil Exploration-LP, both declined to comment on the recommendations.
The government committee includes representatives from the Finance Ministry, Prime Minister’s office, Antitrust Commissioner and Ministry of Energy.
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