Energean plc (LSE: ENOG; TASE: ENOG), which holds the rights to the Karish gas field, is continuing full preparations to begin producing natural gas from the Israeli offshore prospect next month. The decision by Energean's management to continue readying to bring the gas field on-stream was taken in close consultation with Israeli government and security sources, which "Globes" understands made it clear would not allow Hezbollah or any other hostile organization to disrupt production.
Energean CEO Mathios Rigas recently told "Globes" that the maritime border dispute between Israel and Lebanon was not Energean's business but an issue between governments. "We have full belief in the Israeli government to protect its strategic assets and national security. Everybody who invests here knows and understands this that there investment will receive protection from the Israeli government," he said.
Israel downed three Hezbollah armed drones in July that were targeting the Karish field. This was an act of provocation by Hezbollah, which wanted to test Israel's response. The organization's leader Hassan Nasrallah has always threatened that if the dispute over the maritime border was not resolved to his satisfaction, he would not allow the production of gas in the Karish field and other fields in Israel. The most recent threat last week was due to not accepting what Nasrallah described as "Lebanon's rights". Israel, for its part has sent public and secret warnings to Lebanon that any attempt to damage the Karish rig or any of Israel's other gas fields would result in a particularly harsh response.
Compromise in exchanging maritime areas
The talks between the countries on the disputed triangle of water are continuing through the exchange of messages via us mediator Amos Hochstein who will be visiting Beirut and Jerusalem in the coming days. As far as is known, Hochstein is pushing for a compromise based on the division of the disputed area, but not by means of a line through the middle of it, but rather an exchange of maritime economic areas. There have been many versions of the compromise proposals published in the media. "Globes" reported that Israel has shown a willingness to allow an international company to develop the Qana/Sidon field which is divided between the economic waters of Israel and Lebanon as well as in the area of dispute. There is still no agreement on the financial returns from the sale of gas from this field, if gas is discovered there.
Reports on the negotiations and Israel's alleged agreements have led to criticism from Israel's opposition that the country is surrendering sovereign territories. This morning MKs Yariv Levin (Chairman of the Likud faction) and Orit Strock (Chairman of the National Religious faction) published a letter sent to Prime Minister Yair Lapid and alternate Prime Minister Naftali Bennett demanding that any agreement be submitted for approval by a Knesset majority or to a referendum in accordance with the Basic Law of Referendums. According to the law approved in 2014 and enacted at the initiative of Levin, Strock and Interior Minister Ayelet Shaked, a majority of 80 MKs or approval in a referendum is required for any political agreement in which Israel gives up sovereign territory.
The letter says that according to reports from the talks, the government is ready to give up a huge area of about 860 square kilometers of economic waters. The letters insists that this maritime territory is part of the sovereign territory of the State of Israel, and that this is a huge concession by the government as part of the agreement that is being formed.
The letter also protests that a transition government has no right to make such concessions.
Published by Globes, Israel business news - en.globes.co.il - on August 22, 2022.
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