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Delek, Noble in talks for huge Egyptian gas deal

The partners would supply billions of dollars of gas from Israel's Leviathan field and the Aphrodite field in Cyprus.

Delek Group Ltd. (TASE: DLEKG) and Noble Energy Inc. (NYSE: NBL) are in talks over a contract worth billions of dollars of natural gas, which would be sold to the Egyptian market, sources inform "Globes."

The gas would be supplied from both Israel's offshore Leviathan field and Cyprus's Block 12 (Aphrodite). Delek recently reported that the estimated amount of gas in the Cypriot field had been revised upwards from 4.1 TCF to 4.5 TCF.

Meanwhile, Egyptian Petroleum Minister Sherif Ismail has paid an official visit to Cyprus where he met with Energy Minister Yiorgos Lakkotrypis. Ismail said, "We are accelerating talks with the Cypriot government in order to import gas from it for the domestic market and liquefying facilities. Egypt can take in everything that Cyprus can export to it."

Noble Energy and Delek energy exploration units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling Limited Partnership (TASE: DEDR.L) are partners in both Leviathan and Block 12.

This would not be Noble and Delek's first deal with Egypt. As Tamar partners they have signed a Memorandum of Understanding (MOU) to export 7 BCM annually of natural gas to the liquefying plant of Spanish company Union Fenosa at Damietta. In addition, the Leviathan partners are in advanced talks with British Gas (BG) to export 7 BCM annually to their liquefying plant in Sinai.

The Tamar partners are also in advanced talks with Dolphinus to immediately supply gas for Egyptian industry by using the pipeline set up by EMG, which formerly imported gas to Israel from Egypt.

NA
Copyright:
Globes
Published on:
November 27, 2014
Source url:
http://www.globes.co.il/en/article-delek-noble-in-talks-for-huge-egyptian-gas-deal-1000989505
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