Page 8 - MEOG Week 05 2021
P. 8
MEOG POLICY MEOG
Tamar partners agree
on Israel supply deal
ISRAEL AN agreement has been reached between the Delek were opposed to the deal, citing concerns
Israel Competition Authority and the partners about competition between the two fields. The
developing the offshore Tamar gas field, bringing Leviathan consortium is comprised of Delek
to an end a dispute and saving the Israel Electric (45.33%), Chevron (39.66%, operator) and Ratio
Corp. (IEC) around $30.5mn. Oil Exploration (15%).
Shareholders in the Tamar field are: Isramco Chevron, which acquired the assets of Noble
Negev 2 (28.75%), Chevron (25%, opera- Energy last year in a $5bn takeover, was mired in
tor), Delek Drilling (22%), Tamar Petroleum controversy having been accused of cutting gas
(16.75%), Dor Gas Exploration (4%) and Everest supplies to IEC, though according to Delek CEO
Infrastructures (3.5%). The agreement will allow Yossi Abu, no reduction in flows ever took place.
Isramco, Tamar Petroleum, Dor and Everest to Speaking following the latest announce-
sell gas to IEC separately, in accordance with ment, Chevron East Mediterranean manager
their shareholding in the project. This will apply Jeff Ewing said: “Chevron is committed to work
to gas sales from Tamar to IEC from October in co-operation with all the parties at interest in
2020 until June 2021, when the company’s cur- Israel in order to achieve mutually productive
rent contract expires. results. The settlement obtained yields positive
In September 2019, Isramco and Tamar results for all the parties at interest, including
agreed to reduce the price the utility pays for its electricity consumers, and brings this complex
gas from the $6.30 agreed in 2012 to $3.7-4.4 commercial dispute to a close.”
per million British thermal units (mmBtu) in Meanwhile, IEC chairman Yiftah Ron-Tal
an effort to win back the volume of gas they lost said: “The IEC continues its determined cam-
to partners in the Leviathan gas field in a ten- paign to cut gas prices and reduce costs of pro-
der several months earlier, when IEC elected to duction and thus bring good news to the public
diversify sources of gas. However, Chevron and of the cheapest price in Israel.”
P8 www. NEWSBASE .com Week 05 03•February•2021
