While the prime minister is giving the public messages of emerging energy cooperation with the Indian government, this is not yet reflected in the actual situation. The Indians have apparently not yet digested their triumph in the Ministry of National Infrastructure, Energy, and Water Resources tender for marine oil and gas exploration. The results of the tender, according to which only two international companies won marine blocks - Greek company Energean and Indian consortium ONGC - were published over a month ago, but the Indian company has yet to complete the procedure required by the Ministry of National Infrastructure, Energy, and Water Resources in order to show the seriousness of its participation in the tender.
"In order to finish the processes for obtaining a license and obtain final approval for the bids, the companies must complete technical particulars, such as payment of a signing bonus and license fee, and provide the ministry with guarantees for the licenses. ONGC, the operator in the group of Indian companies, must also appoint an official representative in Israel and register as a foreign company in Israel. The bidding companies must fulfill the requirements within 30 days of being notified that they won the tender," a Ministry of National Infrastructure, Energy, and Water Resources announcement stated over a month ago.
Attempts by "Globes" to discover how the completion of the procedure by the Indian company was progressing were not very successful. "The process of obtaining the license has not ended," the ministry told "Globes." "We will pay the license fee by March 1, after an office has been opened in Israel. Right now, we are in the process of opening one," ONGC managing director Narendra Kumar Verma answered, after checking with the company office in Delhi.
An energy sector source said that the amount that the Indian company had to pay was not particularly high - a signing bonus of at least $100,000 in order to show seriousness.
This is in addition to registering in Israel as a foreign company, appointing a representative, and paying minimal securities of $2.5 million, should the company fail to undertake to conduct drilling during the three years starting when it won the tender. If the company undertakes to begin work during this three-year period, it must provide the state with $10 million as a guarantee.
Incidentally, Energean, the second company to participate in the tender, in which it won five blocks for natural gas exploration in the Mediterranean Sea nearby the blocks it is already developing, Karish and Tanin, is fulfilling the instructions given by the Ministry of National Infrastructure, Energy, and Water Resources for the process. In Energean's case, however, the process is not difficult, because it is already active in Israel.
Will the Ministry of National Infrastructure, Energy, and Water Resources make concessions to the Indians concerning the timetables, or give up because of a lack of interest in the tender? The tender is the first of its type in Israel, in which the arrangements for oil and gas exploration in Israel's economic water was established, after these waters were closed for exploration for more than four years.
Published by Globes [online], Israel Business News - www.globes-online.com - on January 17, 2018
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