An investigation by "Globes" has found that two companies with oil and gas exploration licenses in Israel have indirect business ties with Iran. The two companies are well operators for the Larry Mizel group and the Sagui-Luxembourg consortium, which obtained exploration licenses for the Benjamin prospect.
The Mizel group recently requested a new hearing before the Petroleum Council to appeal against the decision to grant what is considered the more attractive exploration license to the Sagui-Luxembourg consortium of Playtech Cyprus Ltd. (AIM:PTEC) controlling shareholder Teddy Sagui and Lapidoth Heletz LP. (TASE: LPHL), controlled by Yaakov Luxembourg.
For the first time, the bidding for the licenses was held under the new rules set by Petroleum Supervisor Yosef Mimram. These rules require every group applying for an offshore license to have a well operator with a track record in the management and execution of offshore oil exploration and production projects worth at least $100 million.
The Sagi-Luxembourg consortium's well operator is Caspian Drilling Company Ltd., controlled by the State Oil Company of Azerbaijan (SOCAR), which has extensive business ties with Iran. In late 2009, SOCAR signed a gas delivery contract to supply 500 billion cubic meters of gas to Iran beginning in 2011. In January 2010, Western media reported that SOCAR had "expressed concern" about possible tighter sanctions against Iran. However, so far as is known, there is no evidence that SOCAR has violated the sanctions regime. Azerbaijan borders Iran, and their bilateral trade amounts to $700 million. Azerbaijan also has extensive ties with the West, including Israel, which has an embassy in the capital, Baku.
The "Globes" investigation found that the Mizel group's well operator, Norway's AGR Group ASA (OMX: AGR), apparently has business ties in Iran. On oil exploration job search websites, AGR advertises scores of jobs on projects in Iran. Mizel's Israeli partner is Ecolog Engineering Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010