Does the Israeli government want to bring in the Indian government as a party in the development of the Tamar and Leviathan natural gas fields? Minister of Energy and Water Uzi Landau, who is in India, met with Minister of Petroleum and Natural Gas Jaipal Reddy to examine the possibility, a top Israeli energy industry source told "Globes".
Landau's spokesman told "Globes" in response, "During his visit, Minister Landau held many important meetings with key Indian government figures. They included meetings with the minister of petroleum and natural gas and the national security advisor of India. The minister discussed a range of issues with them, with an emphasis on energy and water. He did not discuss with anyone bringing the Indian government or Indian companies into the partnerships for the Tamar and Leviathan fields."
The information is strengthened by reports in the Indian media, which quote Indian government sources as saying that an agreement between the parties could be signed soon. In response to questions on the issue by the Indian press, Landau said that the purpose of his visit was to review collaboration in energy.
Asked whether bilateral cooperation would include rights to the Tamar and Leviathan fields, which have an estimated 24 trillion cubic feet of natural gas, Landau said, "We will do this when the time is right."
Two months ago, Minister of Finance Yuval Steinitz said that Israel might export natural gas to India.
One of the leading candidates in the matter could be government-owned Oil and Natural Gas Corporation (ONGC).
There are many reasons for Israeli-Indian cooperation. India needs alternative sources of natural gas, as Iran has threatened to cancel an agreement to supply liquefied natural gas to India because of its support for international sanctions against Iran because of its effort to develop nuclear weapons.
For Israel, the proposal to the Indian government may be part of Israel's efforts to broaden the oil embargo against Iran, and prevent India from buying Iranian oil. It might also add another partner for the financing of the gas fields' development and enable gas deliveries from Tamar to begin on time.
Meanwhile, Iran is still India's second largest supplier of natural gas. But the sanctions against Iran are also affecting India, which has delayed signing new contracts for the development of Farzad-B gas field, which has an estimated 21.68 trillion feet of natural gas, and in which ONGC is involved.
Published by Globes [online], Israel business news - www.globes-online.com - on February 23, 2012
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