Givot rents 300,000 barrel oil storage tank for Meged well

The storage tank will enable the company to develop the oil field without worrying about storage problems.

Givot Olam Oil Exploration LP (TASE:GIVO.L) has rented a storage tank, which can hold 300,000 barrels of oil, ahead of the development of its Meged well near Rosh Ha'Ayin.

The storage tank will replace the company's current storage tank, the lease on which cannot be renewed, and which might not have been big enough to handle the well's future production capacity.

Givot must supply the new oil tank with an initial amount of at least 36,000 barrels of oil for it to function. Above this quantity, the company can sell oil to third parties. The lease is for two years, through September 30, 2014, and has an option to extend for two more years, which will enable the company to develop the oil field without worrying about storage problems.

Published by Globes [online], Israel business news - www.globes-online.com - on October 14, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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