Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, and its partners in the Leviathan natural gas field will as expected continue to hold their rights. The Ministry of National Infrastructures has extended them until March 20 and asked the Leviathan partners to deposit $5 million in guarantees. The Ruth and Amit licenses, where the Leviathan field is located, were due to expire at midnight, but Petroleum Commissioner Alexander Varshavsky announced their extension only after "Globes" reported earlier today that such an extension had yet to be granted.
Varshavsky has already twice extended the licenses for the Ruth and Amit licenses: by six months on June 13, 2013; and by two months on December 13. The second extension was shorter because the Ministry of National Infrastructures is preparing the conditions for the Leviathan lease.
The lease agreement will regulate the relations between the developers and the state regarding the field's development and production for decades. The agreement is also a condition for the signing of the agreement to sell 25% of rights in the Ruth and Amit licenses to Australia's Woodside Petroleum Ltd. (ASX: WPL). This agreement has been postponed by the delay in the lease agreement.
Noble Energy Inc. (NYSE: NBL) owns 39.66% of Leviathan, Delek units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 22.67% and Ratio Oil Exploration (1992) LP (TASE:RATI.L) owns 15%.
Published by Globes [online], Israel business news - www.globes-online.com - on February 13, 2014
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