Delek wanted to give foreign banks liens on Leviathan as collateral for loans to finance the development of Tamar.
The Petroleum Council yesterday rejected a request by Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG) to give liens on its Leviathan licenses to foreign banks as collateral for loans to finance development of Tamar.
The decision is a major blow to Tshuva, as it is liable to delay financing of Tamar's development, and possibly delay the start of gas deliveries from the field, scheduled to begin in 2013.
Delek Group's gas exploration units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each 15.625% of Tamar, and must therefore bear the proportionate costs of its development. They own 22.67% of Leviathan.
Published by Globes [online], Israel business news - www.globes-online.com - on January 11, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012