Paying Attention to the Flow of Gas – Nobel Energy, Delek Drilling, Shemen Oil, Egypt’s East Gas, East Med, etc…

Dear Reader:

We have highlighted the most important parts of this article in red, with the most significant of those bolded and underlined. We are asking you to read the underlines. Much of the financing and ownership of these gas pipelines, production plants, fields and mining operations are going to be in the hands of private companies. Gas is going to be shipped to Eypt to be re-exported (perhaps back to Israel at a higher cost). We surmise that the public at large in Israel is going to be at the mercy of these private companies, many of which have shared ownership. 

Read the underlines.

 

Talks Underway to Build Gas Pipeline to Egypt

(Bloomberg) — Talks are in progress to build an underwater natural gas pipeline between Israel and Egypt, part of efforts to transform the eastern Mediterranean into an energy export hub on Europe’s doorstep, Israeli Energy Minister Yuval Steinitz said. Israeli gas stocks rose.

Construction could begin as early as next year on the pipe to transport gas from Israel’s offshore Leviathan and Tamar fields to Egypt’s existing liquefied natural gas plants for processing and re-export, Steinitz said.

The new line would allow Israel to export much more to Egypt than the maximum 7 billion cubic meters per year that can flow through the existing EMG pipeline connecting southern Israel to Egypt’s Sinai peninsula.

“There’s no final decision yet, but there are talks,” Steinitz told Bloomberg in an interview in Cairo, where he took part in the first East Mediterranean Gas Forum. The event was aimed at boosting cooperation among the region’s nascent gas producers, consumers and transit countries. The next meeting will take place in April.

Oil ministers from Egypt, Israel, Greece, Cyprus, Jordan, Italy and the Palestinian Authority joined the gathering Monday, where they agreed to work together to monetize reserves by using existing infrastructure and adding more capacity.

The meeting came nearly a year after the signing of a $15 billion deal to export Israeli gas to Egypt over a decade — a landmark deal reached after years of litigation.

The companies developing reservoirs in Israel and Cyprus, led by Noble Energy Inc. and Delek Drilling LP, are working on a deal to sell around 12 bcm of natural gas to the Idku LNG facility in Egypt, which is partly owned by Royal Dutch Shell Plc. Progress has been held up by a dispute between the Israeli and Cypriot governments over the development of the Aphrodite field that straddles both countries’ economic waters.

Shares of Delek climbed as much as 2 percent on the news. Ratio Oil Exploration 1992 LP, which owns 15 percent of Israel’s Leviathan, also gained as much as 2 percent in Tel Aviv trading.

Steinitz is the first Israeli minister to visit Egypt since the 2011 uprising that ousted President Hosni Mubarak, and his attendance reflects growing Egyptian openness toward cooperation with Israel. The two countries signed a peace deal in 1978, but ties had remained frigid for decades.

“Today’s meeting is extremely important, as it delivers a very important message to the international community that we’re working together in order to exploit our natural resources,” Steinitz said.

EMG Exports

Egypt’s East Gas and the companies developing Israel’s largest natural gas fields agreed in September to buy 39 percent of the East Mediterranean Gas Co., which owns the existing pipeline once used to export Egyptian gas to Israel. The buyout will allow the pipeline to transport gas in the other direction.

Steinitz said Egypt would begin to receive small quantities of Israeli gas through the EMG pipeline in April. Significant quantities would begin to flow in October or November, and the pipeline could reach full capacity next year.

Link To Europe

Major offshore gas finds have transformed the eastern Mediterranean region into an energy hot-spot.

Steinitz said work on the planned underwater East Med pipeline that will connect Israel, via Cyprus, to Greece and Italy was expected to start next year, and would take five or six years to complete. The European Union estimates the initial cost at $7 billion, with construction expected to be financed by private companies and institutional lenders, he said.

“It will be the longest and deepest gas pipeline in the world,” Steinitz said.

 

Noble-Delek, Cyprus, Turkey, Greece-Cyprus-Israel Tripartite Summit and Geo-Political Dangers

To our readers:

We are republishing an article which is recognized as follows:

This article was originally published by Voxeurop. It is published in association with the European Data Journalism Network  and it is released under a CC BY-SA 4.0  license.

We ask that you kindly refer to the original source to review the initial information and we hope that this attribution suffices to satisfy the regulatory and copyright requirements of the enterprise. If not, we will oblige any request to take down the article or cut it back.
Our interest in the Noble-Delek deal(s) and more specifically with respect to this article, a reference to the “Greece-Cyprus-Israel tripartite summit” rests in what we believe will eventually be the wholesale hijacking of Israel’s energy supply by the private sector. We believe that Israeli citizens will be at the mercy of corrupt individuals and politicians.
We hope that we are wrong.
As we see it, the danger in the current energy deal(s) within Israel or involving Israel is simply one of control. Nearly all of the current energy deals involves a small number of very wealthy private citizens and/or their related companies.
We believe that the Israeli public should be very concerned. They should be demanding guarantees.
Finally, and perhaps more startling, we believe that the negotiations underway to build pipelines or alternatively to cart natural gas across countries, carry with them a strong, if not inevitable risk, of financial terrorism against much of the Middle East and parts of Europe which stand to benefit if these deals are successful; but can with equal measure be held hostage to the immense greed of the corrupt. We have highlighted the points in red that support our concerns.

Since some of the world’s largest gas reserves were discovered in Cyprus, the island has been coveted by fossil-fuel giants. The situation is burdening delicate negotiations on reunification

14/01/2019 –  Chloé Emmanouilidis

As winter approaches, the eastern Mediterranean is in a state of agitation. On 31 October Turkey launched its own hunt for oil and gas off Antalya, a race which could stir up new tensions in the region.

Ankara announced that it would oppose “unilateral, illegitimate and unjust” actions going against its interests. This at a time when Cyprus is about to resume exploratory drilling off its southern coast. The American oil-and-gas company ExxonMobil is due to begin drilling in the promising block 10 of Cyprus’s economic exclusion zone this month.

On 4 November Turkish president Recep Tayip Erdogan threateningly warned the oil giants against any gas exploration in Cyprus, calling them “pirates” and “bandits”. The Cypriot media is talking of a “psychological war”, a “game changer” which Turkey is trying to impose on the eastern Mediterranean.

Over the last decade, exploratory drilling has uncovered vast reserves of natural gas and oil near the coasts of Cyprus, Egypt, Israel and Lebanon. The Mediterranean, the Mare Nostrum, is rapidly becoming the focus of tensions linked to maritime borders and economic exclusion zones (EEZ). Two regional disputes exacerbate the problem: the Israel-Palestine conflict and discord over Cyprus itself, the island being divided since the Turkish invasion of 1974.

On 4 November foreign diplomatic sources told the Cypriot daily Politis  that Turkey’s recently acquired drilling ship named Conqueror (Deep Sea Metro II), sailing off Antalya, is only the start of a Turkish strategic plan to torpedo Cyprus’s energy program by 2019, and that the hydrocarbons question now represents a sticking point for the next stages of talks on the Cyprus question.

In the context of a long-term solution ExxonMobil’s drilling could turn out well, but if the conflict remains unresolved then the risk is of escalating tension. “Turkey is conducting a policy of wait-and-see, so as to gauge the intentions of the Greek-Cypriot side on the Cyprus question and to get a full idea of the results of ExxonMobil’s drilling in block 10”, says Giannis Ioannou, diplomatic analyst at the University of Nicosia.

Ankara, which occupies half of the island (Turkish Republic of Northern Cyprus, TRNC), does not have diplomatic relations with the Republic of Cyprus, which is internationally recognized. Turkey, as protector of the Turkish Cypriots, uses as its pretext the claim that the Cypriot government does not represent the interests of Turkish Cypriots. It refutes Greek-Cypriot claims to exclusive sovereignty, asserts that such sovereignty is subject to negotiation in the talks, and points to its own status as guarantor of a 1980 treaty agreement to protect the rights of Turkish Cypriots. Accordingly, Turkey does not recognize Cyprus’s economic exclusion zone.

This map shows Cyprus’ Exclusive Economic Zone, as well as the different drilling blocks, the companies that are exploiting them, and their country. (Andreas Vou | VoxEurop)

This map shows Cyprus’ Exclusive Economic Zone, as well as the different drilling blocks, the companies that are exploiting them, and their country. (Andreas Vou | VoxEurop)

 

Neither has Ankara ratified the 1982 UN Convention on the Law of the Sea (Unclos) because of its misgivings about article 87 of part V. Following Ankara’s line, TRNC claims co-ownership of the island’s natural resources and opposes attempts by Nicosia to make unilateral contracts for drilling at sea. In September 2011 the Turkish Cypriots signed an “accord of delimitation of the continental shelf” with Turkey. On this basis the separatist regime declared an “economic exclusion zone” comprising half of the Cypriot EEZ and including blocks 1, 2, 3, 8, 9, 12 and 13.

Several analysts had suggested that Cypriot gas would be a catalyst for a solution to the Cyprus problem, but it has turned out to be an obstacle. In 2015 talks were suspended after Turkey violated the EEZ by broadcasting a Navtex message, an international alert signal. But the gradual recovery from the economic crisis of 2012-13 and the election of a new TRNC president, the moderate Mustafa Akinci, allowed talks to resume. The rhetoric used by the Cypriot president, Nikos Anastasiades, was that the hydrocarbons issue must not be a part of negotiations. He asserted that the benefits of natural resources would only be shared equitably by the two communities within the framework of a solution on a reunified federal Cyprus. Strongly disagreeing, Akinci reproached Anastasiades for not creating a committee for the gas and for taking decisions without consulting Turkish Cypriots.

“From now on, at each proposition by the Greek side, Turkey will put gas on the negotiations table”, explains Giannis Ioannou. “Cyprus is paying for the failure of the Crans-Montana talks  ”. It is very likely that Ankara will use the Cypriot EEZ to make future negotiations harder. “Natural gas has clearly become a game-changer. Erdogan will use it as a weapon in negotiations”, says the diplomatic analyst, adding: “I believe that Erdogan no longer wants a federal solution. He has a plan B, he wants a two-state solution. The status quo suits him”.

Talks on a reunification of the island at Crans-Montana in Switzerland, under the aegis of the UN and three guarantor countries, broke down in July 2017. The plan involved the creation of a “bi-zonal and bi-communitary” federation. The two leaders could not agree on the crucial questions of territorial adjustments and security guarantees. With the support of Greece, Cyprus wanted the European Union to be the security guarantor for all Cypriot citizens, but Turkey did not want the the initial system changed, ostensibly fearing for the security of its community. The two leaders later blamed each other for the failure.

During a televised press conference  on 6 November, Anastasiades declared to Cypriots that the Crans-Montana outcome was caused by Turkish intransigeance. He proposed, without details, a decentralized federal government, adding that decentralization would not compromise Cyprus’s territorial integrity or its sovereignty, security or economy. Talks are currently at an impasse, since the Turkish-Cypriot leader had warned that he would resign if a federal bi-zonal and bi-communitary solution was taken off the table.

Reelected in February 2018, Anastasiades sought to supervise the ongoing drilling off the island’s southern coast in order to stimulate economic growth. The proven gas reserves dispersed over the 13 blocks of a part of the Republic of Cyprus’s self-declared EEZ are estimated at 10-12 bn cubic feet. Natural gas in block 12, named “Aphrodite”, drilled by such companies as Noble Energy, Royal Dutch Shell and Delek, is alone estimated at 4.5 bn cubic feet. On 8 February 2018, Italian giant Eni announced a discovery of gas in the block 6, “Calypso”. According to Cypriot media  its proven reserves are estimated at between 6 and 8 bn cubic feet. But these figures remain small compared to those of wells belonging to Egypt (“Zohr”, 30 bn cubic feet) and Israel.

However, Cyprus’s ambitious energy program is bumping up against an increasingly aggressive Turkey. Tension between the Republic of Cyprus and Turkey had already increased in February after Turkish warships blocked  the drilling ship Saipem 12000, belonging to Eni, which was heading towards gas deposits in block 3 of the EEZ. Following Turkish provocations drilling in block 3 was suspended. Nicosia accused Turkey of violating international law and announced that it would maintain its program of exploitation and exploration.

In February 2018, following these tensions, UN Secretary General Antonio Guterres preferred to play for time, declaring that his role was not to “take position on the rights of member states regarding existing international law […]. A solution to the Cyprus problem represents the best chance to solve the problem”. A point that he reiterated in his report  to the UN Security Council in October 2018.

“Because of Turkey’s actions in the EEZ it is not certain that Cyprus will be able to sell gas”, believes Fiona Mullen, specialist on Cyprus and the eastern-Mediterranean gas question, when asked in February. “The main lesson is that we must not pretend that the gas question is separate from the Cyprus problem. When one side has international law on its side but the other has weapons, the only way to solve the problem is by talking. Only a political solution will end this. […] The main short-term risk is that Turkey will use its deep-sea drilling ship, Deep Sea Metro II, to drill in the number-3 well, where Eni is present. The long-term risk for business is that no gas will be exploitable until the Cyprus problem is resolved”, she says.

From a more technical perspective there exist different options for transporting the gas, of which none has yet been chosen. The gas could be exported by connecting undersea pipelines, or by constructing a liquefaction plant. Another system, which facilitates the use of excess gas, would be to generate electricity which could be exported to Europe by undersea cable. For the EU Cypriot hydrocarbons are a means of diversifying its gas supply and reducing its dependence on Russia, and it has identified the East Med gas pipeline as a general-interest project. “At present I do not think that the East Med pipeline [serving Israel, Cyprus, Greece and Italy] is viable. It has been costed at $6 billion by its benefactors. That is a ridiculously low figure for a pipeline which would extend from Israel to Italy, says Fiona Mullen. “The quickest, simplest and least expensive way to export gas would be to send it by pipeline to Turkey. But that requires a solution to the Cyprus problem, which seems very unlikely right now”.

Turkey also sees the possibility of gas exports through Cyprus and Greece as a threat to its own ambitions as a transit country through which gas from the Caspian Sea and central Asia can reach the European market. Last February Egypt, following tension in the Cypriot EEZ, deployed its warships into the area. With its actions Turkey is also testing regional alliances.

Over the last ten years, discoveries of hydrocarbons and the effects of the Arab Spring have both shaped new axes of cooperation and pushed the Cypriot government to seek new alliances in the region so as to secure its future gas exports. But these ties are vulnerable since no military treaty has yet been signed.

In this regard, recent years have seen several tripartite summits, including Greece-Egypt-Cyprus and Israel-Greece-Cyprus. For the first time in its history Cyprus has been playing, de facto, an important role in regional politics and security. By the same token bilateral relations with France deepened under the François Hollande presidency, with renewed defence contracts and French support for Cypriot resource extraction, including notably the presence of Total in several blocks of the EEZ.

Under President Emmanuel Macron French involvement has continued to grow, particularly in defence matters. During a working visit to Cyprus in September 2018 French foreign minister Jean-Yves Le Drian declared that “For us the security of Cyprus is a priority in a particularly agitated region”. In an interview with the Greek newspaper Kathimerini he reiterated that France had always supported Cyprus’s sovereign right to explore and exploit its natural resources in accordance with EU law and international law.

For its part the United States also reiterated Cyprus’s right to develop its resources, including those inside the EEZ. The Cypriot foreign minister, Nikos Christodoulides, visited the USA on 7 November and signed a declaration of intention which officialises and establishes a new framework for US-Cypriot security cooperation. Sources reported that there was also discussion about an American participation at an upcoming Greece-Cyprus-Israel tripartite summit. The shared position of Ankara and Turkish Cyprus seems to indicates that the economic benefits of gas for the two communities are only the tip of the iceberg. Beyond the economic aspect, obviously fundamental for a future federal state, lies the question of sovereignty, since Turkish-Cypriot participation in management of the reserves will allow Turkey to guarantee its vital interests in the region.

East Mediterranean Gas Forum (EMGF) and Energy Minister Yuval Steinitz…Noble-Delek

A series of firsts for Egyptian gas forum

Mirette F. Mabrouk
Senior Fellow, Director of Egypt program

Mirette F. Mabrouk

The regional gas forum Egypt hosted yesterday saw several firsts. It was the first such forum that the country had hosted, the invitees aren’t usually found attending the same parties, and it has led to a declaration of the establishment of the East Mediterranean Gas Forum (EMGF), bringing together Egypt, Cyprus, Greece, Italy, Israel, Jordan, and Palestine. The new forum will be based in Cairo and is in line with Egypt’s ambitions to establish itself as a regional hub for natural gas.

Israel was represented by Energy Minister Yuval Steinitz, the first such visit by an Israeli Cabinet member since the 2011 Arab Spring uprising. Steinitz referred to it as “the most significant economic cooperation between Egypt and Israel since the signing of the peace treaty 40 years ago,” in comments to the Associated Press. “It brings all of us — Jordan, Israel, Cyprus, Greece, Egypt, the Palestinian Authority, and Italy — together.”

Egypt and Israel signed a $15 billion gas deal last year and the first shipments, from Israel, are slated for early this year, from Israel’s Tamar field via Delek Drilling and its U.S. partner, Noble Energy, which would sell a total of 64 billion cubic meters of gas over a 10-year period to Egypt’s Dolphinus Holdings. The forum offers Egypt the promise of both financial reward and regional leverage.

Apart from the inclusion of both the Israelis and the Palestinians in any such forum, the announcement was particularly relevant because of its future implications. Europe is keen on encouraging new delivery routes in order to lever itself free of current Russian control over the region’s energy market and the Eastern Mediterranean provides both new finds and delivery routes.

There are few factors that encourage regional stability like the promise of financial gain. It can, however, place pressure in the opposite direction, and there is potential for regional upset. Turkey has made no secret of its displeasure with Cyprus over the issue of energy and has demanded that it cease exploration operations. More to the point, Turkish President Recep Tayyip Erdogan directly addressed companies wishing to do business with Cyprus: “Energy companies who involve themselves in irresponsible steps taken by the Greek Cypriot side can never be met with understanding,” he said. “They could lose a friend in Turkey.”

Noble-Delek, Israel, Greece and Cyprus to Sign Natural Gas Deal… Why Would Delek US Holdings be Getting Downgraded?

Israel, Greece and Cyprus to sign natural gas pipeline deal

Gasoil News – Published on Mon, 24 Dec 2018

israel-_greece_and_cyprus_to_sign_natural_gas_pipeline_deal_47710.jpgImage Source: The Times of Israel

AP reported that Prime Minister Mr Benjamin Netanyahu as saying that Israel, Greece and Cyprus will sign an agreement early next year to build a pipeline to carry natural gas from the eastern Mediterranean to Europe, while the United States pledged its support for the ambitious project. The USD 7 billion project, expected to take six or seven years to complete, promises to reshape the region as an energy provider and dent Russia’s dominance over the European energy market. It also could curtail Iranian ambitions to use Syria as a gateway to the eastern Mediterranean.

Speaking at a summit with the Greek and Cypriot leaders in southern Israel, Mr Netanyahu said the three nations reaffirmed their commitment to the pipeline and discussed “important aspects” of the project. Italy is also a partner in the pipeline’s planning. Cyprus President Nicos Anastasiades said the project is waiting for a green light from the European Union to move forward. We’re going to sign formally, officially, this agreement in a few months.”

In another boost for the project, US Ambassador David Friedman hailed the pipeline as integral to the “stability and prosperity of the Middle East and Europe,” and urged all countries in the region to ensure its success.

Washington is eyeing the east Mediterranean with renewed interest. In a meeting with the Greek foreign minister earlier this month, U.S. Secretary of State Mike Pompeio called the region “an important strategic frontier” for Washington, which is working to strengthen its relations with “democratic allies there like Greece and Cyprus and Israel.”

Israel has been developing natural gas fields off its Mediterranean coast for the past decade. Its “Tamar” field already is operational, while the larger “Leviathan” field is expected to be operational next year. While most of its gas is used domestically, it has signed export deals with Egypt and Jordan and has its eyes on the larger European market.

However, the proposed pipeline would allow Israel and Cyprus to export their recently discovered offshore reserves to Italy and eventually to the rest of Europe. Greece, which would act as a conduit for the gas to the continent, could also use the pipeline to convey any hydrocarbons potentially found in its own waters.

Meanwhile, this would potentially transform the countries’ economies while also diversifying Europe’s gas supply and reduce its dependence on Russia. Developing the region’s hydrocarbon reserves would also serve to curb Teheran’s bid to “open a window” to the east Mediterranean through Syria, Assistant Secretary of State Wess Mitchell told Greek language newspaper Kathimerini in an interview published this week.

Leviathan Platform Making Its Way to Israel – Why Would Delek’s Shares Have Been Downgraded?

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Leviathan platform starts making its way to Israel

(MENAFN – Trend News Agency) Parts of Noble Energy’s Leviathan platform have begun making their way to Israel and are on schedule to be deployed off Israel’s coast in the first quarter of 2019. The legs of the gas rig – known as the jacket – are being transported to Israel on large barges pulled by tugboats, Trend reports referring to The Jerusalem Post .

The ‘jackets,’ gargantuan pieces of equipment built by teams of welders and engineers, were created in Texas by Noble Energy and subcontractors that specialize in constructing gas rigs. Each jacket is placed on a barge which extends 180 meters, longer than a soccer field.

Over the next few weeks, the barges will cross the Atlantic Ocean and will reach Israel. The jackets will then be installed on the floor of the Mediterranean, in a complicated process that will take between two and four weeks.

In the second half of 2019, the Topsides of the gas rig will arrive in Israel. That is where the rig’s workers operate and live. Gas is expected to start flowing from Leviathan toward the end of next year.

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A Leviathan of a Step for Private Interests – Noble-Delek, Private Interests to Gain Over Public – East Gas

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Egyptian Intel Is Big Gainer From Israeli Gas Deal, Report Says

The Egyptian intelligence service is slated to receive 80 percent of the income from East Gas, the main beneficiary of a massive natural gas deal with Israel

Delek Drilling’s partner in the EMG gas pipeline to Egypt, the Egyptian company East Gas, is owned by Egypt’s intelligence service, Egyptian news site Mada Masr reported.

East Gas, the main beneficiary of plans to export Israeli natural gas to Egypt’s private consortium Dolphinus Holdings via the EMG pipeline, is a private company, most of whose shares are held by Egypt’s intelligence service, says the report.

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“The gas import deal — scheduled to come into effect early next year — found that the repeated claims by Egyptian government officials that the venture is a purely private sector affair wholly outside the ‘government framework’ are misleading at best,” stated Mada Masr in its report.

The intelligence service is slated to receive 80% of East Gas’s income, it states.

Furthermore, Egyptian intelligence also has an interest in Dolphinus, says the Egyptian news outlet.

“Documents and sources reveal that through a complex web of overseas shell corporations and subsidiaries, the intelligence body stands to cash in at all stages of the deal, from the transport of Israeli gas to Egypt to its final sale to the Egyptian government. These profits end up in the coffers of the GIS, and not the public budget,” states Mada Masr.

The news site says the intelligence service worked through shell companies in countries including the Virgin Islands, Luxembourg, Switzerland and the Netherlands, in order to conceal the identity of the Egyptian players, avoid taxes and shield them from accountability.

Israel is supposed to start exporting gas to Egypt’s Dolphinus consortium in March 2019, via the EMG pipeline. The gas, from Israel’s Tamar and Leviathan reserves, is valued at $15 billion. Last month, Delek, Noble and East Gas announced they were buying 39% of EMG’s shares for $518 million.

Meanwhile, Egypt recently discovered its own massive offshore gas reserves. Mada Masr says the Dolphinus deal does not appear to be in Egypt’s best interests, as the Israeli gas costs significantly more than locally produced Egyptian gas.

Delek, Noble, Tamar, Leviathan, Dolphinus – Who’s Gas is this Anyway?

Delek, Noble sign accords for $15b in sales of Israeli natural gas to Egypt

Partners in the offshore Tamar and Leviathan fields ink deals with Egypt’s Dolphinus Holdings Ltd. for the sale of some 64 billion cubic meters over coming decade

 

Illustrative photo of a natural gas field in the Mediterranean Sea (Moshe Shai/FLASH90)

 

The partners in Israel’s Tamar and Leviathan natural gas fields, including a unit of US Noble Energy Inc and Delek Drilling LP, have signed $15 billion in deals to export natural gas to Egypt over 10 years.

In a filing to the Tel Aviv Stock Exchange on Monday, Delek Drilling LP, a partner in the Tamar and Leviathan fields offshore Israel, said Noble Energy Mediterranean and its partners in the fields have signed accords with Egypt’s Dolphinus Holdings Ltd. for the sale of some 64 billion cubic meters of natural gas from the two fields.

One accord calls for the sale of 3.5 BCM of natural gas annually from the Leviathan field, for a total of 32 BCM, the filing said, with the partners estimating the total revenues from the sale from the Leviathan field to reach $7.5 billion.

In addition, the partners said they signed an additional accord for the sale of natural gas from the Tamar field, for a total of 32 BCM and some $7.5 billion.

Delek said the partners were considering various options for the supply of the gas to Egypt, including via a Jordanian-Israeli pipeline that is currently being built or the use of the existing East Mediterranean Gas pipeline. Delek Drilling and Noble plan to start negotiations with EMG for the use of the pipeline to Egypt, the companies said in a separate, emailed statement.

Another option is to transport the gas to Egypt by connecting the Israeli transmission system to its Egyptian counterpart, the statement said.

Supply from Tamar will start as soon as the infrastructure for its transport is in place, the companies said, while that from Leviathan will start as soon as production starts from the well. Supply will continue until the amounts agreed upon are supplied or until December 2030, whichever comes first, the companies said.

…..

“We are at an important milestone on the road to realizing our collective vision and dream of making Israel a significant exporter of gas to countries in the region,” said Yitzhak Tshuva, the controlling shareholder of Delek Group, which controls Delek Drilling. “The agreement will strengthen the relationships between Israel and its neighbors and increase economic cooperation between them.”

Dolphinus is a natural gas trade company which is planning to supply gas to large industrial and commercial consumers in Egypt.

Noble Energy holds 39.66 percent of Leviathan and a 32.5% stake in Tamar. Delek Drilling holds 45.34% stake in Leviathan and 22% stake in Tamar. Ratio Oil Exploration (1992) Ltd. Partnership holds a 15% stake in Leviathan. Isramco Negev 2 LP holds a 28.75% stake in Tamar.

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