Tamar partners Delek Group Ltd. (TASE: DLEKG) units Delek Drilling Limited Partnership (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L), and Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) reported today that they have signed an agreement with Paz Oil Company Ltd. (TASE:PZOL) and its Ashdod oil refinery to provide condensate (liquid hydrocarbons produced with natural gas which are separated from it by cooling, expansion, and various other means).
according to the agreement, the Tamar partners will stream the condensate from the gas field to Ashdod. The final price that Paz will pay will be fixed according to the current price of Brent crude oil less margins.
The agreement is valid for five years from when the condensate comes on stream from Tamar. Towards the end of the five years, the sides will hold talks on extending the deal for a further five years. If no agreement can be reached on a new price then the agreement will be terminated after five years.
The Tamar partners estimate that revenue from the sale of condensate will amount to $30-50 million per year.
Published by Globes [online], Israel business news - www.globes-online.com - on November 29, 2012
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