Delek wins Canadian exploration license

Yitzhak Tshuva  picture: Bloomberg

Delek and Israeli partner Navitas have won the license for Block 7 off the Newfoundland coast.

Israeli energy company Delek Group Ltd. (TASE: DLEKG) has won a tender for an oil and gas exploration license off Canada's eastern seaboard. The bid was part of Delek's strategy to geographically diversify its operations.

Delek will hold 70% of the license together with Navitas Petroleum, which will hold the remaining 30%. Navitas is owned by chairman Gideon Tadmor, the former partner of Delek controlling shareholder Yitzhak Tshuva.

The exploration rights are for Block 7, covering 2,000 square kilometers in water 1,400 meters deep. The exploration target is estimated to be 4,500 meters beneath sea level and Delek and Navitas will invest $36 million in the endeavor.

The geological potential of the West Orphan basin in which Block 7 is located is estimated 25 billion barrels of oil and 20 trillion cubic feet of natural gas (for comparison Leviathan contains 21 trillion cubic feet of gas). This is according to an estimate by the Newfoundland and Labrador provincial government. The license is valid for six years with an option to extend.

Published by Globes [online], Israel business news - www.globes-online.com - on November 10, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Yitzhak Tshuva  picture: Bloomberg
Yitzhak Tshuva picture: Bloomberg
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