The partners in the Tamar gas field attempted to calm investors today as their share prices fell sharply, and insisted that production costs for the prospect will be no more than their estimates of $2.8 billion. The Tamar partners refute the report by UK consultants by Petroleum Development Consultants Ltd. (PDC) for the Natural Gas Authority at the Ministry of National Infrastructures, which estimates the total cost of gas production and transportation to Israeli consumers at $3.77 billion.

A statement from Tamar partners said, "The overall cost estimates of developing the Tamar prospect for about $2.8 billion were carried out by Noble Energy, the project's operator, among other things on the assumption that the land-link induction station is near Kibbutz Ma'ayan Zvi: the said estimate is no different and remains the same."

The Tamar partners are Delek Group Ltd. (TASE: DLEKG) subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) which each own 15.625%, Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) owns 28.75%, Noble Energy Inc. (NYSE: NBL) owns 36%, and Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) unit Dor Alon Energy Exploration Ltd. owns 4%.

Delek Group's share price was down 6.4% to NIS 70.17 in afternoon trading on the TASE, Delek Drilling fell 5.5% to NIS 8.27, Avner fell 5.11% to NIS 1.45, Isramco fell 6.2% to NIS 4.54 but Dor Alon Energy bucked the trend rising 1.09% to NIS 51.98.

Published by Globes [online], Israel business news - www.globes-online.com - on May 24, 2010

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