Page 12 - Gi flipbook April 2018

NEWS | INTERNATIONAL

EGYPT
Egyptian firm to buy $15 billion

of Israeli natural gas

AN EGYPTIAN COMPANY
will buy $15 billion of Israeli
natural gas in two 10-
year agreements, a major
deal that Israel hopes will
strengthen diplomatic ties.
The partners in Israel’s
Tamar and Leviathan
offshore gas fields said they
would supply the private
Egyptian firm Dolphinus
Holdings with around 64
billion cubic metres of gas
over a decade – with half
coming from each field,
and the proceeds shared
equally.
Israeli Prime Minister
Benjamin Netanyahu said
the agreements would
“strengthen our economy
(and) strengthen regional
ties”, reports Reuters.
His Energy Minister, Yuval
Steinitz, called it the most
significant export deal with A drilling platform off
Egypt since the neighbours the coast of Israel
signed their historic peace
treaty in 1979. plant in Egypt. Egyptian An Egyptian government plans to sell its US offshore
Israel’s Delek Group Ltd Petroleum Minister Tarek official who declined to be exploration business,
and Texas-based Noble El Molla told the private identified said the deal did said the prices under the
Energy Inc have led both Egyptian television channel not mean Egypt itself would agreements were linked to
gas projects. ON E that outstanding import any gas from abroad. the Brent oil benchmark.
“Egypt is becoming a real disputes would have to be “International private Barclays analyst Tavy
gas hub,” Yossi Abu, CEO resolved before the deal companies will import Rosner said weakness seen
of Delek subsidiary Delek could go through. gas from abroad in the in Israeli gas shares over the
Drilling LP, told Reuters. Molla’s comments framework of their own past several months was
“This deal is the first deal of refer to Egypt’s challenge needs, and will liquefy due to investors’ doubts
potentially more to come.” to a 2015 ruling by the and export them again,” that gas exports would
The partners have also International Chamber the official said, without ever take place. “We believe
been trying to finalise a of Commerce ordering elaborating. today’s announcement will
long-term deal to supply Egypt to pay $2 billion in Shares in Delek Drilling pave the way to a re-rating
a Royal Dutch Shell Plc compensation after a deal were up 28 per cent of the shares,” he said.
to export gas to Israel via following the news and Leviathan, located about
pipeline collapsed in 2012 Delek Group shares were 80 miles (130km) west
due to months of attacks up 19 per cent. of Haifa, was discovered
by insurgents in Egypt’s Gary W Willingham, in December 2010 and is
Sinai peninsula. Noble Energy’s Executive scheduled to start producing
“We don’t mind importing Vice President of by the end of 2019.
gas from Israel, but we have Operations, said the deals Exports from Tamar, which
terms in order (to allow) provided “further clarity and began production in 2013,
something like this to confidence in our expected are expected to start under
happen... most importantly, cash flow profile for 2018 the deal sometime between
Benjamin Netanyahu the settlement of ongoing and beyond”. the second half of 2020 and
arbitration,” Molla said. Noble Energy, which the end of 2021. ■

12

News.indd 7 15/03/2018 14:24