Noble Energy freezes talks with Israel Shipyards

Tamar

Noble is suspending negotiations for the NIS 15 million deal until the future of Israel's natural gas industry becomes clear.

Noble Energy Inc. (NYSE: NBL) is suspending its negotiations with Israel Shipyards until the future of the natural gas industry in Israel becomes clear, according to a letter sent this week to Israel Shipyards' management.

The negotiations are for a seven-year extension of the lease for the base of Noble Energy's marine activity. The base area covers 28 dunam (seven acres), for which Noble Energy would have paid over NIS 15 million a year for more than five years.

Antitrust Authority director general David Gilo decided last week to revoke a compromise reached with the Leviathan partnership in which the partnership would have sold two smaller gas reservoirs, Karish and Tanin, while retaining the larger Leviathan reservoir.

Following the decision, Noble Energy chairman and former CEO Charles Davidson stated, "The actions of the Antitrust Authority are another disturbing example of the uncertain regulatory environment in Israel." Noble Energy president and CEO David Stover added that the company was disappointed with Israel and the Antitrust Authority director general, and had decided to suspend its investments in Israel.

Published by Globes [online], Israel business news - www.globes-online.com - on January 1, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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