Offshore staff

TEL AVIV, Israel – Delek Drilling and its partners in the Tamar lease offshore Israel have signed a gas supply agreement with Dalia Power Energies.

Dalia will purchase up to 1.38 bcm (48.7 bcf) annually over a 17-year period for a new power station that it plans to construct. Supplies should start feeding through during the second half of 2014.

The price of gas provided by the agreement will be determined according to a formula based mainly on the cost of generating electricity, as fixed periodically by Israel’s Public Services Authority-Electricity.

The Tamar project partners estimate total revenue from the sale of gas to Dalia during the basic agreement period could reach $5 billion.

01/10/2012