Yitzhak Tshuva's Delek Group Ltd. (TASE: DLEKG) and Jackob Maimon's Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) have garnered most of the local headlines following their announcement of the large natural gas discovery at the Tamar prospect offshore from Haifa. However, the success of the Tamar-1 well also accrues to Houston-based Noble Energy Inc. (NYSE: NBL), which operates the well. Noble Energy is also Delek's partner in Yam Tethys.
Tamar's partners agree that without Noble Energy's professional contribution and financial wherewithal, the drilling would never have gotten underway. The company used its international connections to find the rig and bring it to Israel on a very tight schedule; its partners agreed to begin the drilling before the end of 2008.
Noble Energy replaced BG Group plc (NYSE: BRG; LSE: BG) in the seismic survey analysis, the drill plan, and its execution, which was considered technically quite complicated. The drilling went without a hitch.
Delek Group and Noble Energy began collaborating in the late 1990s, when the latter was still known as Samedan. The two companies set up the joint venture, Yam Tethys, in which Delek units Delek Investments and Properties Ltd., Delek Drilling Limited Partnership (TASE: DEDR.L), and Avner Oil and Gas LP (TASE: AVNR.L) jointly own 53%. Noble Energy owns 47%. Yam Tethys' moment came in 1999 with the discovery of commercial quantities of natural gas at its Mary prospect, 17 kilometers offshore from Ashkelon, followed by the discovery at the Noa prospect.
Noble Energy places great importance on the Israeli market, even though it appeared to be no more than a dry hole for the past five years. When Tamar's partners offered Noble Energy the opportunity to take over BG Group's stake in the prospect in 2003, Noble jumped at the offer. It owns 36% of the prospect, making it the largest shareholder, ahead of Delek Drilling and Avner with 15.625% each, Isramco, with a 28.85% stake, and Alon Israel Oil Company Ltd. unit Dor Gas Ltd. with 4%.
The success of Noble Energy's wells in Israel has facilitated the company's international expansion. In addition to the company's US activity, it currently operates offshore developments in Ecuador, Argentina, the North Sea, the Netherlands, China, Vietnam, and Equatorial Guinea. The company's Israeli activity currently accounts for a quarter of its non-US revenue and 14% of its proven natural gas reserves - not including the Tamar prospect.
Published by Globes [online], Israel business news - www.globes-online.com - on January 20, 2009
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