Page 12 - MEOG Week 10 2021

MEOG POLICY MEOG

Israel and Cyprus come

closer to gas agreement

ISRAEL ISRAEL and Cyprus this week agreed loose (taken over by Chevron last year) and Israel’s
terms on a deal that could bring to an end a nine- Delek Drilling for exploration and production
year disagreement over offshore resources. work at the field, with the latter pair also the
Cypriot energy minister Natasa Pilides said majority shareholders in Israel’s offshore Levi-
this week that she and her Israeli counterpart athan and Tamar gas fields. Leviathan holds
Yuval Steinitz had agreed on a framework deal combined 2P and 2C resources of just under 23
and guidelines allowing for the development of trillion cubic feet (651bn cubic metres) of gas
offshore gas fields. and 41mn bbl of condensate.
During Steinitz’s visit to Cyprus, Pilides told Production began in late 2019 and output is
reporters: “The framework will be set out in a nearing the 34mcm per day plateau. Tamar holds
joint letter which is being prepared. We are both 302bcm of gas, with Delek currently engaged in
very satisfied we are now at this point after nine discussions to either farm-out of the field or sell
years of discussion.” its local subsidiary after taking steps to transfer
Meanwhile, Cyprus News Agency quoted its other assets to a London-listed NewCo.
Steinitz striking a slightly more cautious tone, A statement issued by Steinitz’s office said
saying: “Nothing is certain, but there is a good that companies involved from the Cypriot side
chance that this might lead us to a solution of would begin talks with those on the Israeli side
this little but significant obstacle in the wonder- to determine how the Israeli firms would be
ful relations and cooperation between Cyprus compensated.
and Israel on energy and on many other issues.” The partners in the Ishai block are MAM-
The impasse has been ongoing since the MAX Oil & Gas (63%), Israel Opportunity
2011 discovery of Cyprus’s 4.1 trillion cubic foot Energy Resources (21%), Eden Energy (11%)
(116bn cubic metres) Aphrodite gas field which and Norway’s Petroleum Services Holdings
Israel says overlaps into its Ishai block, thereby (PSH, 5%), formerly AGR Group.
preventing development work from beginning. The parties have been given 180 days to reach
Some estimates have suggested that up to an agreement, with the case to be referred to an
around 10% of the reservoir lies on the Israeli “international expert” for a further six-month
side of the maritime border. period if no breakthrough is reached. At the
In 2019, Nicosia signed a 25-year concession conclusion of this, it would be returned to the
with Royal Dutch Shell, US-based Noble Energy state level.™

Source: Israel
Opportunity Energy
Resources

P12 www. NEWSBASE .com Week 10 10•March•2021