The Israeli partners in the Tamar and Dalit offshore natural gas prospects Delek Group Ltd. (TASE: DLEKG) subsidiaries Delek Drilling LP (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L), as well as Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L), have approved spending of up to $230 million on equipment and services by their US partner Noble Energy Inc. (NYSE: NBL)
In a joint notice to the Tel Aviv Stock Exchange (TASE) today, the Israeli companies said that the contracts for the equipment and services were long-lead items, which would be delivered in 2009-11. They add that Noble Energy believes that if development of the fields is delayed, or not approved in ways that requires the equipment and services, the contracts can be cancelled and/or assigned to other parties.
"Globes" yesterday disclosed that mining consultancy firm Wood Mackenzie estimates the base value of Tamar field natural gas reserves at $8 billion, and that its future value could be $3.5-17 billion, depending on the price of natural gas.
Delek Drilling and Avner Oil each own 15.625% of the Tamar and Dalit prospects, Isramco owns 28.75%, Noble Energy unit Noble Energy Mediterranean Ltd. owns 36%, and Alon Israel Oil Company Ltd. unit Dor Gas Exploration LP owns 4%.
Delek Group's share fell 0.1% in morning trading to NIS 689.20, subsidiaries Delek Drilling fell 0.3% to NIS 6.01, Avner Oil rose 2.2% to NIS 0.97, while their direct parent Delek Energy Systems Ltd. (TASE: DEOL) rose 3% to NIS 634.80. Isramco was unchanged on the TASE at NIS 0.35, but rose 9% yesterday on Nasdaq to $153.95.
Published by Globes [online], Israel business news - www.globes-online.com - on August 26, 2009
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