Leviathan partners signing $15b Jordanian gas deal

Leviathan

The Leviathan partners will become Jordan's main supplier of natural gas in the coming decades.

The Leviathan partners will sign a Memorandum of Understanding (MOU) with Jordan today for the export of $15 billion of gas over 15 years. This will be Israel's first natural gas export deal. The MOU will be signed in Jordan by representatives of the government and the Leviathan field partner Noble Energy Inc. (NYSE: NBL) on behalf of itself and its partners Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling Limited Partnership (TASE: DEDR.L) and Ratio Oil Exploration (1992) LP (TASE:RATI.L).

The agreement will make Israel Jordan's principle supplier of natural gas in the coming decades. The deal has been brought to fruition with the assistance of Israel Minister of Natural Infrastructures, Energy and Water Resources Silvan Shalom and the US State Department.

US Secretary of State John Kerry's special envoy and coordinator for international energy affairs Amos Hochstein is in Jordan for the signing ceremony. Silvan Shalom will be required to approve the deal before contracts are finally signed.

This deal significantly changes the economic strategic relations between Israel and Jordan and makes Israel an energy producer and exporter that can use its position to achieve strategic aims. Discussions over Israeli gas exports have rumbled on in Israel for the past few years and ultimately it was decided that Israel can export 40% of its offshore natural gas reserves.

Published by Globes [online], Israel business news - www.globes-online.com - on September 3, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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