The Antitrust Authority will allow Israel Opportunity to own rights in the Pelagic exploration licenses as well as the Gal and Neta licenses.
Israel Opportunity Energy Resources LP (TASE: ISOP.L) has obtained permission from the Antitrust Authority to own rights in the Pelagic exploration licenses as well as the Gal and Neta licenses. The approval paves the way for the Petroleum Commissioner to approve the new ownership structure of the Roy and Neta licenses: Ratio Oil Exploration (1992) LP (TASE:RATI.L) - 70%; Israel Opportunity - 10%; and Italy's Edison International SpA - 20%.
In December 2012, Israel Opportunity signed an agreement with Ratio to acquire 10% of the deep water Gal license, located 150 kilometers west of Netanya, and which borders on the Ratio Yam license, part of the Leviathan structure. The Antitrust Authority's permission for the deal was required because it had previously ruled that Israel Opportunity would be required to sell ts rights in either ithe Pelagic or Gal license in the event of a natural gas discovery.
The Antitrust Authority reconsidered its position, after working with various parties and understanding the special needs of the oil and gas exploration industry, and decided to allow Israel Opportunity to own rights in the Pelagic and Gal licenses, under the conditions set, as well as in the Roy and Neta licenses, including the right to royalties and profits.
Israel Opportunity CEO Eyal Shuker said, "The Antitrust Authority's new decision will allow Israel Opportunity to realize its strategy of diversifying risks by building a portfolio of several gas assets. The partnership has $30 million in cash, which will allow to realize this strategy and finance its share in the various licenses, promoting real competition in the industry."
After the Petroleum Commission approves Israel Opportunities' rights in the Neta and Gal licenses, the partners in them will publish a work plan to explore them.
Published by Globes [online], Israel business news - www.globes-online.com - on April 14, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
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