Eitan Wertheimer, Shlomo Nehama, and former Israel Securities Authority chairman Moshe Terry have entered Israel's oil and gas exploration industry. In a complicated deal, whose details have not been finalized, they will acquire rights in the Alon E, Ruth D, Keren, and Avia offshore licenses from from Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG) and Noble Energy Inc. (NYSE: NBL).
Several current oil and gas exploration companies, including Modiin Energy LP (TASE:MDIN.L) and Alon Natural Gas Exploration Ltd. (TASE: ALGS), are also negotiating to acquire rights in licenses. ATP Oil & Gas Corporation (Nasdaq: ATPG) of the US, making its first foray into Israel, is in talks to acquire a third of the Avia and Keren licenses.
Delek and Noble Energy are not charging for the actual rights to the licenses, because they actually belong to the state. The new partners will apparently win super-royalties, and will undertake to make rigid investments in the exploration plans, proportionate to their holdings in the licenses. The payments includes costs already incurred, such as for seismic surveys.
Nehama is prominent among the new investors. He is negotiating to acquire 10% in the four licenses. Wertheimer is seeking a 5-10% stake, and Terry wants 5%. Alon Gas has priority, as it is already a partner of Delek and Noble Energy, owning 4% of the Tamar license.
Alon E and Ruth D are in the northern part of Israel's maritime exclusive economic zone, near Tamar and Leviathan. Noble Energy owns 47% of the two licenses, and Delek units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 26.4%. Delek Drilling and Avner Oil own the Avia and Keren licenses, located near Yam Tethys in the southern part of Israel's exclusive economic zone, in equal shares. A 3D seismic survey has already been carried out at Avia.
Published by Globes [online], Israel business news - www.globes-online.com - on February 10, 2011
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