Beny Steinmetz is returning to the Israeli oil and gas exploration industry, two years after selling his stake in the Tamar license, thereby missing out on the great natural gas discovery. Sources inform ''Globes'' that he has acquired 50% of Pelagic Explorations Company, which owns six offshore licenses near the Leviathan structure.
A source involved in the deal said that Steinmetz will operate through BSG Resources Ltd., a major global mining and energy company. The source said, "Steinmetz's financial and professional capabilities and his vast international experience will make him a key player in the industry. He hasn’t come for a quick profit, but to stay."
In recent weeks, Steinmetz negotiated with Pelagic owner Prentiss Tomlinson, who acquired the company in August. Petroleum Supervisor Yaakov Mimran has to approve the sale, and if he does, Steinmetz will enjoy the proximity to Leviathan, and might even win a small part of its profits.
The sources added that one option under consideration by Pelagic is to drill an exploratory well on the eastern border of the Lela license, a few kilometers from the Leviathan exploratory well.
Pelagic owns six gas exploration licenses, with a total area of 2,050 square kilometers, which border by the Leviathan licenses on the west. Current geological evaluations believe that the Leviathan structure extends into the area of the Lela license.
The Petroleum Law (5712-1952) stipulates payment arrangements between adjacent licenses if a reservoir extends into the area of adjacent licenses.
Steinmetz owned 5% of the Tamar license through STX, in which was a partner with geologist Yossi Langotzky. Steinmetz quit the license following the collapse of Lehman Brothers in October 2008, after deciding that the risk was too high. A few weeks after quitting, the Tamar partners discovered billions of dollars of natural gas.
Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2010
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