OTC Houston Visit
UOG had a superb time attending the world’s largest oil and gas event, OTC in Houston, last week. The UOG team were delighted to meet many Israeli companies at the Israel Pavilion, many of which were keen to increase ties with Texas companies and other international companies. Furthermore, it was great to meet so many international oil & gas companies looking to expand their operations to Israel and the region, to take advantage of its emerging oil and gas industry. UOG 2015 (Israel’s 2nd Annual International Oil & Gas Conference and Exhibition) will be a great platform to build further collaboration. Sign up for UOG 2015 here.
Israel’s New Energy Minister
This week there have also been updates in Israel’s oil and gas industry.
Israel’s Prime Minister has now appointed the country’s new Minister of Energy and Water Resources, Yuval Steinitz. Steinitz previously served as the Intelligence and Strategic Affairs Minister.
It will be interesting to see what Mr. Steinitz’s agenda will be over the coming months but UOG generally see this move as a positive as his priority will be to revitalise slowed development of Israel’s gas fields.
New Proposal’s for Israel’s Gas Cartel
Following David Gilo’s antitrust proposals earlier this year, Israeli regulators now have new proposals for Delek and Noble (Israel’s main operators), as reported in Israel’s Globes newspaper. In the current plans, there will be no architectural change to the Leviathan gas field, and Delek and Noble will retain their ownership and hence not have to sell the field’s gas separately. Forthcoming gas contracts will be lightly controlled in expectation of competition being generated.
Israel’s Prime Minister Benjamin Netanyahu is currently promoting a national projects bill for energy and infrastructure in order to bypass bureaucratic hurdles which could hinder economic development (such as Gilo’s previous gas cartel proposals).
In the Tamar field, Delek will be obliged to sell its stakes within 6 years, whereas Noble Energy will need to reduce its stake from 36% to 25%. This Tamar opportunity is likely to be snapped up soon. Steady cash flow from the local market and future exports means an exciting prospect for whoever buys these shares. Exports of Israel’s gas are likely to increase in the next few years as Israel increases its export quota, along with increasing demand of imported LNG from resource-poor countries such as Japan. Meanwhile, in Karish and Tanin fields, both Noble and Delek will have to sell all of their holdings.
These proposals will give new companies a chance to enter Israel’s exciting new oil and gas industry.
To learn more about the opportunities in Israel and the region’s gas sector, attend UOG 2015 – Israel’s 2nd Annual International Oil & Gas Conference and Exhibition, taking place 17-19th November 2015 at the InterContinental David Hotel Tel Aviv. Sign up now to get the Early Booking Discount.
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