The Israel Competition Authority and three government ministries (Engergy, Justice and Finance) have given the Tamar partners one month to amend the arrangements between them in order to allow competition with the Leviathan gas field. The government is demanding that the Tamar field compete in price with the Leviathan field - something currently being prevented by Noble Energy Inc. (NYSE: NBL) and Delek Drilling LP (TASE: DEDR.L), which have a major stake in both the Tamar and Leviathan fields.
At present any sales deal by the Tamar partners can be vetoed by Noble and Delek Drilling, which together have a 47% stake in the Tamar gas field. Isramco Ltd., which has a 28.75% stake in Tamar, is eager to sell gas to the Israel Electric Corporation (IEC) (TASE: ELEC.B22) by undercutting the price that Leviathan is asking. Market sources in the energy sector believe that a compromise will be reached allowing each Tamar partner to sell gas separately according to their stake in the field.
The dispute began when Isramco and Tamar Petroleum (16.75% stake in Tamar) agreed a deal with the IEC, which was vetoed by Noble and Delek Drilling, which own 47% of the rights in Tamar compared with 85% of the rights in Leviathan.
Published by Globes, Israel business news - www.globes-online.com - on April 13, 2020
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