Leviathan partners sign Palestinian gas deal

The partners signed a $1.2 billion contract with the Palestine Power Generation Co. - the first export contract for the offshore natural gas field.

The Leviathan partners - Noble Energy Inc. (NYSE: NBL), Delek Group Ltd. (TASE: DLEKG), and Ratio Oil Exploration (1992) LP (TASE:RATI.L) - have signed the first export contract for the offshore natural gas field: a $1.2 billion contract with the Palestine Power Generation Company plc for the export of 4.75 billion cubic meters of gas over 20 years,

Trading in Leviathan's Israeli partners was suspended just before the market closed. The announcement of the contract by the Leviathan partners was made shortly after the market closed.

The contract was signed in the American Colony Hotel in Jerusalem between Minister of the Palestinian Energy Authority Dr. Omar Kittaneh, Delek Group controlling shareholder Yitzhak Tshuva and senior company officers, and representatives of Noble Energy and Ratio.

"I believe that a strong and stable economy between the parties will bring peace and stability to the whole region, and everyone will benefit from a prosperous economy and growth," said Tshuva. "Peace, economic cooperation, and mutual respect and trust are a joint endeavor. Economic cooperation, such as the agreement signed today, will help bring the countries closer and will contribute to building a basis for peace. It will be possible to create many new jobs and cooperation between businesses and enterprises. Together, these will link the common wish of all the parties to reach understandings and peace."

Noble Energy VP Eastern Mediterranean operations Lawson Freeman said, "The group hopes to soon sign more agreements from Leviathan for both the Israeli market and for export. We continue to work toward developing the Leviathan field as soon as possible."

Published by Globes [online], Israel business news - www.globes-online.com - on January 5, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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