Tamar partners sign Jordan gas deal

Arab Potash and Jordan Bromine will buy $500 million of natural gas over 15 years.

Noble Energy Inc. (NYSE: NBL), on behalf of the partners in the Tamar natural gas field, signed a gas supply deal with Arab Potash Company and Jordan Bromine Company in Amman today. Noble Energy will build a pipeline from Israel Chemicals Ltd. (TASE: ICL) unit Dead Sea Works to the Arab Potash Company on the opposite shore of the Dead Sea.

The contract, worth $500 million was mediated by US Deputy Assistant Secretary for Energy Diplomacy at the State Department Amos Hochstein, who held 14 meetings with the parties over the past 18 months. Minister of National Infrastructures Silvan Shalom reportedly visited Jordan a few weeks ago, but talks with Jordan's King Abdullah II were handled by officials from the Prime Minister's Office.

The Tamar partners will sell the gas over 15 years starting 2016.

Noble Energy owns 36% of Tamar, Delek Group Ltd. (TASE: DLEKG) subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 15.625%, Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) owns 28.7%, and Alon Natural Gas Exploration Ltd. (TASE: ALGS) owns 4%.

In January, the Tamar partners signed a 20-year $1.2 billion gas supply contract with the Palestinian Authority for a planned power station in the West Bank. Jordan, like Israel, has been hit by repeated disruptions to imports of Egyptian gas, and is seeking to secure its energy supply.

“Noble Energy is excited about this deal, the first export agreement from Tamar," said Noble Energy VP Eastern Mediterranean Lawson Freeman. "This deal will pave the way for additional export projects which could enhance regional cooperation as well as provide additional supply to the domestic market and enhanced security of supply through development of additional reservoirs and infrastructure. I would like to express my gratitude to the US State Department for their role in advancing this tremendous opportunity."

Published by Globes [online], Israel business news - www.globes-online.com - on February 19, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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