Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) states in its financial report for 2011 that, according to Netherland Sewell & Associates Ltd. (NSAI), the revised gross mean proved and probable reserves for the "Tamar" field offshore from Israel are 9.71 trillion cubic feet (TCF) of natural gas.
In August 2011, the Tamar partners reported 9.1 TCF of gas at Tamar. Isramco added in its financial report, that Tamar's proved, probable and possible reserves total 11.27 TCF.
The new estimates are based on wells drilled ahead of commercial production at Tamar in 2013.
Tamar's development budget is $3 billion, of which the reservoir's partners - Isramco, Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L), and Noble Energy Inc. (NYSE: NBL) - will invest $1.34 billion in 2012. Isramco's share of this investment in 2012 is $387 million.
Isramco also provided an update on the preliminary planning and engineering work for Tamar's floating liquefied natural gas (FLNG) terminal. In a separate announcement on Thursday, the Tamar partners reported the signing of an agreement in principle with Russia's Gazprom Russia's Gazprom for the sale gas from the FLNG, which will begin to produce 2-3 million tons per annum (MTPA) of gas annually from 2017 over a period of 15-20 years. Under the agreement, the price of gas will be set according to the price of natural gas in Asia. This announcement followed an announcement by the Tamar partners in November 2011 that Noble Energy had signed an initial agreement with South Korea's Daewoo Shipbuilding & Marine Engineering Co. (KSX: 42660) for the construction of infrastructures for the Tamar field. Daewoo has begun preliminary studies of these infrastructures.
Isramco's share price rose 1.6% in early trading on the TASE today to NIS 0.524, giving a market cap of NIS 6.2 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2012
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