Sources inform ''Globes'' that the partners in the Tamar natural gas prospect offshore from Haifa have initiated formal procedures for commercial production. Noble Energy Inc. (NYSE: NBL), the well operator, has applied to Petroleum Commissioner Dr. Yaakov Mimran for a 250-square kilometer concession within the Matan license in which the Tamar prospect is located.
The Matan license covers 360 square kilometers; the Tamar partnership is seeking a concession for 80% of the area. Under Israel's oil law, 30-year production concessions are allowable on the condition of a presentation showing potential production of commercial quantities of oil. The provisions of the law stipulate that the concession can be extended for 20 years. However, a concession can be revoked if no oil is produced or if there are on longer commercial quantities of oil at the site.
In exchange for the Matan concession, the Tamar consortium will present to the Ministry of National Infrastructures a production plan and timetable for the prospect. The consortium has so far only applied for a concession, but has not yet presented a plan for developing the natural gas field.
Noble Energy owns 36% of the Tamar prospect, Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) owns (28.75%), Delek Group Ltd. (TASE: DLEKG) subsidiaries Delek Drilling LP (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L) each own 15.625%, and Alon Israel Oil Company Ltd. subsidiary Dor Gas Exploration Ltd. owns 4%.
Published by Globes [online], Israel business news - www.globes-online.com - on March 16, 2009
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