Egyptian gas contract could impact Tamar

Delek, one of the partners in the Tamar gas development offshore Israel, has expressed concerns that the project could be impacted by an alternative supply deal.

Offshore staff

TEL AVIV -- Delek, one of the partners in the Tamar gas development offshore Israel, has expressed concerns that the project could be impacted by an alternative supply deal.

A letter from Dr. Uzi Landau, Israel’s minister of National Infrastructures, to Prime Minister Benjamin Netanyahu confirmed that a critical potential customer of the Tamar project could choose instead to purchase gas from Egyptian supplier, EMG. The letter also requested an immediate intervention by the Prime Minister to prevent a delay or suspension in the development of Tamar.

If the alternative agreement goes ahead, Delek claims, Tamar and the Israeli market could suffer considerable damages.

Further, if the recent recommendations of Israel’s Shishinski Committee are applied to existing leases, certain parties may be forced to review their additional investments in the Tamar project, including the volume and schedule of these investments.

These factors could affect the timing of production from the field and anticipated income from the project, Delek adds.

12/21/2010

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