The flotation of Tamar Petroleum (TASE: TMRP) boosted limited partnership Delek Drilling's (TASE: DEDR) third quarter profit to $617 million, from $81 million in the third quarter of 2016. The partnership's profit for the first nine months of 2017 was $755 million.
Third quarter revenue, net of royalties, was $92 million, which compares with $125 million in the corresponding quarter of 2016. The decline is due to the dilution of Delek Drilling's holding in the Tamar gas reservoir through the sale of 9.2% to Tamar Petroleum.
Delek Drilling said today that the partnership's results reflected the rising trend in demand for natural gas both in the power production sector and in the industrial sector, despite the maintenance work carried out during the third quarter on production installations, during which the supply of gas from the Tamar reservoir to the Israeli economy was cut by half and even halted entirely for a few days because of a crack discovered in the ventilation system.
In the first nine months of this year, the Israeli economy consumed 7.5 BCM of natural gas, 5.6% more than in the corresponding period in 2016, and 17.4% more than in the corresponding period in 2015.
According to a report prepared by Netherland Sewell and Associates Inc. in July, on the basis of data gathered during the drilling of the Tamar 8 well, the estimate of the reserves in the Tamar project (Tamar and Tamar SW) has risen. Proved (P1) and probable (P2) reserves are now put at 318.1 BCM of gas and 14.6 million barrels of condensate.
In the first nine months of 2017, the partnership distributed profits of $780 million, representing a dividend yield of 25%. It invested $323 million in developing the Leviathan project. Production of natural gas from the Leviathan reservoir for the Israeli market and for export is planned to begin by the end of 2019.
Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2017
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