The firms involved in the Tamar and Dalit natural gas drilling projects announced a giant deal in Israel this morning. Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L), Avner Oil and Gas LP (TASE: AVNR.L), Delek Drilling Limited Partnership (TASE: DEDR.L), Delek Energy Ltd. (TASE: DEOL), and Cohen Development and Industrial Buildings Ltd. (which owns 50% of the Avner Oil and Gas LP general partner) reported that they will sell over $1 billion worth of natural gas to privately-held Dalia Power Energies Ltd.
Shares in the companies rose on news of the deal. Trading was halted in the firms' shares on the Tel Aviv Stock Exchange (TASE) with the notice, but has since resumed.
By early afternoon, Isramco shares were up 8.5%. Avner rose 3.3%, Delek Drilling rose 3.7%, and Delek Energy rose 0.98%.
Dalia Power Energies is building a natural-gas powered power plant of up to 870MW at Tzafit North, on agricultural land belonging to the village of Mavo Beitar. Dalia Power Energies will buy at least about 5.6 billion cubic meters of gas, which at current prices are worth about $1 billion.
The deal is for 17 years from when the power plant begins operating, which Dalia expects will be in the second half of 2013.
Delek Drilling and Avner Oil each own 15.625% of the Tamar and Dalit prospects, Isramco owns 28.75%, Noble Energy unit Noble Energy Mediterranean Ltd. owns 36%, and Alon Israel Oil Company Ltd. unit Dor Gas Exploration LP owns 4%.
Published by Globes [online], Israel business news - www.globes-online.com - on December 15, 2009
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