The Oil Law advisory council at the Ministry of National Infrastructures met on Monday to review and discuss applications for oil and natural gas exploration licenses and oil production licenses. The council reviewed many applications for oil and natural gas licenses, including oil shales and the transfer of rights.
The council approved six applications:
- A license for Modiin Energy LP (TASE:MDIN.L) for the Yam Hadera prospect.
- A preliminary permit with forward rights for Zerah Oil And Gas Explorations LP (TASE: ZRAH) and Ginko Oil Exploration LP for the Gulliver offshore prospect.
- A license for Ginko for the land Orly prospect.
- A license for Swiss-based Rig Builders Contracting SA for the land Gurim prospect.
- A license for Dr. Baruch Drin Consultants and Services Ltd. and Griffin Strategic Investments Ltd. for the land Yahel prospect.
- A license for ACC Resources Ltd. for land Shemen prospect (in the Med Ashdod area).
The initial permit is for a maximum of 18 months for an unlimited area, during which preliminary surveys are conducted, including the collation of all current material as well as new material to fill in the information gaps. When the permit period expires, the licensee must apply for a drilling prospect.
A license is for three years, with an option for renewal, and requires drilling a well. An extension is for a maximum of seven years.
If and when commercial quantities oil or gas are discovered, the license is for a maximum of 50 years. The holding will not be granted for more than 30 years in the first stage, and only subject to justifying the reservoir's potential.
Published by Globes [online], Israel business news - www.globes-online.com - on February 10, 2010
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