The Tamar partners will pay Yam Tethys $380 million to use its natural gas facilities for the transporting of gas from Tamar onshore, as early as April 2013.
Delek Group Ltd. (TASE: DLEKG) and Noble Energy Inc. (NYSE: NBL) jointly own Yam Tethys and are the majority shareholders in Tamar, along with Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and Alon Natural Gas Exploration Ltd. (TASE: ALGS).
Under the agreement, Yam Tethys will make its wells, Mari B platform, compression system, pipelines, and natural gas terminal at Ashdod available to Tamar. The Tamar partners will also have the right to build gas transportation and storage facilities at Yam Tethys facilities.
Yam Tethys has two gas reserves, Mari B and Noa. Mari B will run out this year, and Noa has never been tapped.
Tamar has an estimated 9.71 trillion cubic feet of gas, and commercial production is due to begin next year.
Delek Group fell 0.2% in morning trading to NIS 724.10, giving a market cap of NIS 8.2 billion. Its gas exploration units Avner Oil and Gas LP (TASE: AVNR.L) rose 0.7% to NIS 2.54, giving a market cap of NIS 8.4 billion but Delek Drilling LP (TASE: DEDR.L) fell 1.3% to NIS 14.20, giving a market cap of NIS 7.8 billion. Isramco was unchanged at NIS 0.52, giving a market cap of NIS 6.2 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on April 18, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012