The Petroleum Council approved: Energian and an Indian company will look for natural gas and oil at sea
Energy Minister Yuval Steinitz: "The fact that only some of the search areas have been in demand requires us to learn lessons about the future"
By Ora Koren
11.12.2017 13:44
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Natural gas drilling rig "Shark", in March
Natural gas drilling rig "Shark", in March AMIR COHEN / Reuters
The Petroleum Council today approved, as expected, the proposals made in the framework of the competitive process for the opening of the sea for natural gas and oil exploration, which ended in mid-November. After examining the threshold conditions and the work plan, the members of the Petroleum Council recommended to the Petroleum Commissioner to grant search licenses in five blocks to Greek Energien and to grant a search license in one block to a consortium of Indian companies.
These are the only two contenders who bid for the tender, and therefore its results are considered particularly disappointing. Moreover, the Ministry of Energy finished it after two extensions designed to increase the number of bidders and marketing it as the beginning of a new era in Israel's natural resources. The tender included the marketing of 24 blocks (up to 400 square kilometers), and the licenses will be granted for three years, with an option to extend for another three years.
Energian Israel, which holds shark and crocodile drilling licenses, will receive search licenses in blocks 12, 21, 22, 23 and 31 adjacent. A consortium of Indian companies including IOL, IOCL, BPRL and ONGC will receive a search license in Block 32.
In order to finalize the license and finalize the proposals, the companies must complete technical details, including the payment of a signature bonus and a license fee, and to transfer guarantees to the Ministry for the licenses. In addition, ONGC, which operates in the group of Indian companies, is required to appoint an official representative in Israel and to register as a foreign company in Israel. Companies offering to complete the requirements must submit a notice of their license for up to 30 days.
The competitive process ended about a month ago, after a year in which the energy minister, the director general of the ministry and the professionals at the ministry, worked with government agencies and international companies to encourage the entry of new players into the Israeli energy market. After the sea was closed for searches for more than four years, in which framework engineering and economic thresholds were set for companies interested in participating in the process.
Despite the efforts, the tender, due to be closed on April 21, was postponed to July 10 after only four companies had purchased the knife. The ministry then announced another postponement, to 15 November. As revealed by TheMarker, after eight months of tender, only one accepted proposal for a drilling license was submitted, which was submitted by Energian of Greece, which is interested in capturing the area between the shark and crocodile reserves in its possession. The rest of the companies in the Mediterranean have refrained from applying for the tender, partly due to the Israeli monopolistic market, lack of clarity regarding gas export destinations and geopolitical considerations.
Energy Minister Dr. Yuval Steinitz said today that "this is the beginning of a long-term process that will lead to realizing the potential of natural gas and oil reserves in the economic waters of the State of Israel for the benefit of the country's citizens. I welcome the entry of companies from India and Greece into the Israeli energy market. However, the fact that only some of the search areas have been in demand requires us to learn lessons about the future. I believe that the memorandum of understanding signed last week for the construction of a natural gas pipeline from Israel to Italy will make gas exploration in Israel more attractive. Therefore, I have instructed to begin preparing for another competitive process in 2018, in which the lessons learned will be assimilated. "
https://www.themarker.com/dynamo/1.4676704
Energy Minister Yuval Steinitz: "The fact that only some of the search areas have been in demand requires us to learn lessons about the future"
By Ora Koren
11.12.2017 13:44
Save comments
Natural gas drilling rig "Shark", in March
Natural gas drilling rig "Shark", in March AMIR COHEN / Reuters
The Petroleum Council today approved, as expected, the proposals made in the framework of the competitive process for the opening of the sea for natural gas and oil exploration, which ended in mid-November. After examining the threshold conditions and the work plan, the members of the Petroleum Council recommended to the Petroleum Commissioner to grant search licenses in five blocks to Greek Energien and to grant a search license in one block to a consortium of Indian companies.
These are the only two contenders who bid for the tender, and therefore its results are considered particularly disappointing. Moreover, the Ministry of Energy finished it after two extensions designed to increase the number of bidders and marketing it as the beginning of a new era in Israel's natural resources. The tender included the marketing of 24 blocks (up to 400 square kilometers), and the licenses will be granted for three years, with an option to extend for another three years.
Energian Israel, which holds shark and crocodile drilling licenses, will receive search licenses in blocks 12, 21, 22, 23 and 31 adjacent. A consortium of Indian companies including IOL, IOCL, BPRL and ONGC will receive a search license in Block 32.
In order to finalize the license and finalize the proposals, the companies must complete technical details, including the payment of a signature bonus and a license fee, and to transfer guarantees to the Ministry for the licenses. In addition, ONGC, which operates in the group of Indian companies, is required to appoint an official representative in Israel and to register as a foreign company in Israel. Companies offering to complete the requirements must submit a notice of their license for up to 30 days.
The competitive process ended about a month ago, after a year in which the energy minister, the director general of the ministry and the professionals at the ministry, worked with government agencies and international companies to encourage the entry of new players into the Israeli energy market. After the sea was closed for searches for more than four years, in which framework engineering and economic thresholds were set for companies interested in participating in the process.
Despite the efforts, the tender, due to be closed on April 21, was postponed to July 10 after only four companies had purchased the knife. The ministry then announced another postponement, to 15 November. As revealed by TheMarker, after eight months of tender, only one accepted proposal for a drilling license was submitted, which was submitted by Energian of Greece, which is interested in capturing the area between the shark and crocodile reserves in its possession. The rest of the companies in the Mediterranean have refrained from applying for the tender, partly due to the Israeli monopolistic market, lack of clarity regarding gas export destinations and geopolitical considerations.
Energy Minister Dr. Yuval Steinitz said today that "this is the beginning of a long-term process that will lead to realizing the potential of natural gas and oil reserves in the economic waters of the State of Israel for the benefit of the country's citizens. I welcome the entry of companies from India and Greece into the Israeli energy market. However, the fact that only some of the search areas have been in demand requires us to learn lessons about the future. I believe that the memorandum of understanding signed last week for the construction of a natural gas pipeline from Israel to Italy will make gas exploration in Israel more attractive. Therefore, I have instructed to begin preparing for another competitive process in 2018, in which the lessons learned will be assimilated. "
https://www.themarker.com/dynamo/1.4676704
