Minister of National Infrastructures, Energy and Water Resources Dr. Yuval Steinitz and the ministry's director general Shaul Meridor will participate in Road Show energy conventions in London, and Singapore, where they will present comprehensive data on Israel's gas potential. These efforts are aimed at encouraging international companies to bid in tenders for a permit to drill in Israel's economic waters.
Last month, the Petroleum Council published the division of Israel's economic waters into 24 license areas (blocks), which will be offered to international energy companies in tenders.
The division followed Steinitz's announcement, two months ago, that he intends to open Israel's economic waters for exploration, after a four year hiatus. The 24 blocks are similar in size to exploration permits granted in the past (up to 400 square kilometers) and had been chosen based on seismic and geological data; all blocks are at least seven kilometers from the shoreline.
In November, the cabinet and the Antitrust Authority are expected to publish the preliminary conditions for companies that wish to bid in the tender. Completion of the tender is planned for the first quarter of 2017.
Before travelling Steinitz told "Globes," "In the energy and gas sector, I decided when I entered office that I had two rescue missions. The first was to rescue the Karish and Tanin gas fields that were discovered in 2010 and have since lay beneath the sea like an unturned stone. The second was to pave the way for the exploration, discovery, and drilling of other gas fields that probably lie beneath our waters in vast amounts. As a first step I hired a top French company to provide a geological-scientific estimate of the chances of finding oil and gas in the sea."
Steinitz added, "According to their estimate, based on new seismological and geological research as well as the results of recent drillings in Cyprus and Egypt, we have another 2,000 BCM, which is more than double what we have found to date. To put that into perspective, we are hope to find another two Leviathans and two Tamars in terms of size."
Steinitz says that finding major companies to come to Israel is no easy matter. "The fact is that in the past five years not a single new international company has come here, other than Noble, to take an interest in our exploration. That's because the gas outline agreement was stuck and in 2012 the Minister of Energy decided to close the sea. I've been dealing with this the past few months. Firstly I declared that from November we'll issue tenders for international competition, 24 new exploration areas in the sea, which is about 50% of Israel's economic waters."
Steinitz says he will be meeting with 25-30 senior representatives of major international energy companies including six huge companies that have not previously expressed interest in Israel. There will also be a day-long seminar in which experts will present the opportunities Israel's offshore energy offers.
He expects 90-95% of the gas found to be exported and the representatives of the international companies will hear about the three pipeline options to Turkey, Cyprus and Egypt.
Published by Globes [online], Israel business news - www.globes-online.com - on August 31, 2016
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