Delek Group Ltd. (TASE: DLEKG) and Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) today reported that the Atwood Hunter oil rig slated to drill at the Tamar 1 natural gas concession offshore from Haifa, has departed West Africa en route to Israel. The Atwood Hunter is due to arrive during the second half of November.
The Tamar 1 exploration is one of the largest natural gas explorations underway in Israel, with an investment of $144.5 million. The partners in the concession are Delek subsidiaries Delek Drilling Limited Partnership (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L) (a 28% share altogether), Isramco (28%), Noble Energy Inc. (NYSE: ) subsidiary Nobel Energy Mediterranean Ltd. (33%), Dorgas Ltd. (6%), and STX, controlled by Benny Steimetz (5%). STX reportedly withdrew plans to participate in the Tamar 1 exploration; its share in the investment was $7 million.
The other partners nevertheless decided to go ahead with the exploration. Energy market sources believe that Delek and Isramco will buy out STX's stake.
Delek Drilling and Avner last week announced decided not to distribute NIS 36 million in outstanding profits for 2007. The money will instead be used for exploration of the Michal and Matan concessions offshore from Haifa and Atlit, including the Tamar 1 exploration. Tamar 1 is located 90 kilometers west of Haifa in 1,650-meter water. The concession is considered one of the more promising sites. Natural gas is expected at a depth of 5,000 meters below the seabed.
Published by Globes [online], Israel business news - www.globes-online.com - on October 19, 2008
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