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.

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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.

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“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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Delek-Noble Energy – Israel, A Leviathan of a Profiteering Venture…

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Delek-Noble Energy announces $500m deal to allow Israeli gas exports to Egypt

US-Israeli consortium and Egyptian gas company buy 39% of disused underwater gas pipeline connecting Ashkelon to northern Sinai

 

A US-Israeli consortium leading the development of Israel’s offshore gas reserves announced Thursday a deal that would enable the export of natural gas to Egypt.

Noble Energy and its Israeli partner Delek, along with Egyptian East Gas Company, bought 39 percent of a disused pipeline connecting the Israeli coastal city of Ashkelon with the north Sinai.

The consortium paid $518 million for the interest in the East Mediterranean Gas Company pipeline.

The mainly undersea pipeline will be used to transport natural gas from the Tamar and Leviathan reservoirs to Egypt from as early as 2019, allowing a 10-year $15 billion deal signed in February with Egypt’s Dolphinus to move forward, Delek said in a statement.

It will be the first time Egypt, which in 1979 became the first Arab country to sign a peace treaty with Israel, imports gas from its neighbor.

Israel had bought gas from Egypt but land sections of the pipeline were repeatedly targeted by Sinai jihadists in 2011 and 2012, and soaring demand meant Egypt could use the gas domestically.

Israel had bought gas from Egypt but land sections of the pipeline were repeatedly targeted by Sinai jihadists in 2011 and 2012, and soaring demand meant Egypt could use the gas domestically.

Delek CEO Yossi Abu called the pipeline purchase “the most significant milestone for the Israeli gas market since the discoveries” of the reservoirs.

“The Leviathan reservoir is becoming the Mediterranean basin’s primary energy anchor, with customers in Israel, Egypt and Jordan,” he said.

In September 2016, Jordan struck a deal to buy 300 million cubic feet (8.5 million cubic meters) of Israeli gas per day over 15 years, an agreement estimated to be worth $10 billion.

Israel has limited natural resources but in the past few years it has discovered major gas fields off its coast and is building the infrastructure needed to tap them.

Tamar, which began production in 2013, has estimated reserves of up to 238 billion cubic meters (8.4 trillion cubic feet).

Leviathan, discovered in 2010 and set to begin production in 2019, is estimated to hold 535 billion cubic meters (18.9 trillion cubic feet) of natural gas, along with 34.1 million barrels of condensate.

Israel hopes its gas reserves will give the country energy independence and the prospect of becoming a supplier for Europe as well as forging strategic ties within the region.

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