Sources inform ''Globes'' that Israel Electric Corporation (IEC) (TASE: ELEC.B22) is examining the possibility of acquiring rights in the Noa natural gas license as part of a future agreement to buy gas from the Tamar field. IEC signed a letter of intent with the Tamar partners - Noble Energy Inc. (NYSE: NBL), Delek Group Ltd. (TASE: DLEKG), Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L), and Alon Natural Gas Exploration Ltd. (TASE: ALGS) - in January 2010.
On idea raised during the negotiations is for IEC to participate in the financing of Noa's development in exchange for using the field as a back-up source of gas if, for example, the flow of gas from Egypt is suspended. Development of the Noa field will cost an estimated $200 million and take a year. Development of the field would also greatly reduce the expected gas shortage until Tamar comes on line in late 2012.
Noa is close to the maritime border between Israel and the Gaza Strip and Yam Tethys, owned by Delek and Noble Energy, which already sells gas to IEC. Discovered in 1999, Noble Energy owns 47% of the rights, Delek Group owns the rest through units Delek Drilling LP (TASE: DEDR.L) (25.5%), Avner Oil and Gas LP (TASE: AVNR.L) (23%), and Delek Investments and Properties Ltd. (4.4%).
The Ministry of National Infrastructures says that development of the Noa field has been avoided because of the need for a political agreement with the Palestinian Authority for sharing the adjacent Noa South field.
Published by Globes [online], Israel business news - www.globes-online.com - on April 6, 2011
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