Italian gas company Edison S.p.A, insists that sale of Karish & Tanin fields must occur in the next few months, or it will not be willing to buy them at all. Karish is the most proximate Israeli field to the Lebanese maritime border. The extension of Karish reservoir into the Lebanese EEZ is probable. The commpany is pre-qualified as non-operator for the First Lebanese Liencing Round.
The Karish & Tanin natural gas reservoirs will be sold within 2 years, according to a compromise reached between the state, Noble and Delek.
Noble & Delek are undertaking to sell the reservoirs within 18 months. If they are not sold by then, they will be assigned to a trustee, who will sell them within six months. This compromise solves an important dispute between the parties.
One substantive issue on the agenda that has apparently been solved is the question of gas prices. The state & the gas companies have agreed that price of gas in Israel will be a weighted average of all the prices in the existing gas contracts – what the gas companies are calling the “Israeli Hub.” For example, the average gas price in the 1st quarter of 2015 was $5.44 per mmbtu. Noble Energy accepted the state’s demand to include in the plan an option for separate marketing from the huge Leviathan reservoir 10 years after it is developed.
According to Edison, a time period of a year is too long. Edison, a subsidiary of Electricite de France (EDF), France’s national energy company, is considered a drilling operator of the same caliber as Noble Energy. Among other things, the company holds the Neta & Royee licenses, together with Ratio Oil Exploration & Israel Opportunity. The company fears that if the state does not force Delek Group & Noble Energy to sell the reservoirs almost immediately, the Tamar & Leviathan partners will sign all the gas contracts for the local economy. In this situation, the small reservoirs will have no customers left to supply gas to.