Sources inform ''Globes'' that Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, will submit a new request to place a lien on its rights to Leviathan in favor of HSBC Holding plc (LSE: HSBA; HKSE: 005; NYSE, Paris: HBC). The lien will serve as collateral for a loan to finance its share of the development of the Tamar gas field. The belief is that the Petroleum Commissioner at the Ministry of Energy and Water Resources will approve the new request. In exchange, Delek will not be allowed to use the loan to finance development to any oil discovered at Leviathan or for the development of Cyprus's Block 12.
In a notice to the TASE today, the Delek's gas exploration units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) said, "The partnerships are considering measures to obtain permission for the lien, including the filing of a new application."
The companies said that the Petroleum Commissioner officially notified that that it has rejected their requests to attach their rights to the Rachel and Amit licenses (part of Leviathan). Earlier this month, the Petroleum Council accepted the opinion of Petroleum Commissioner Alexander Varshavsky that Delek's request should be rejected. The rejection left Delek the options of appealing against the decision to Landau within two weeks, or of resubmitting the request when the Petroleum Council next convenes in a few weeks.
Avner and Delek Drilling each own 22.67% of Leviathan and 15.625% of Tamar. Noble Energy Inc. (NYSE: NBL) owns 39.66% of Leviathan and 36% of Tamar, Ratio Oil Exploration (1992) LP (TASE:RATI.L) owns 15% of Levithan, and Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) unit Alon Natural Gas Exploration Ltd. (TASE: ALGS) own 28.7% and 4%, respectively, of Tamar.
Delek Group's share price fell 0.5% in morning trading to NIS 798.50, giving a market cap of NIS 9.1 billion, Avner's share price fell 0.5% to NIS 2.71, giving a market cap of NIS 9 billion, Delek Drilling's share price fell 0.8% to NIS 15.43, giving a market cap of NIS 8.5 billion, Ratio's share price rose 2.7% to NIS 0.377, giving a market cap of NIS 2.7 billion, and Isramco's share price fell 0.4% to NIS 0.516, giving a market cap of NIS 6.2 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 22, 2012
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