By Sara Toth Stub
Special to DOW JONES NEWSWIRES
JERUSALEM--The partners in Israel's large offshore Leviathan
natural gas reserve confirmed Monday that they have approached
Australia's Woodside Petroleum Ltd. (WPL.AU) about acquiring a
share in Leviathan but didn't give details.
Since last year, the Leviathan partners, which include Israeli
energy exploration companies and Houston-based Noble Energy Inc.
(NBL), have been looking for a strategic partner to help develop
the Leviathan field, which is estimated to contain up to 16
trillion cubic feet of gas deep under the Mediterranean Sea.
There have been local and international media reports that the
Leviathan partners have also offered the stake to Russia's Gazprom
and Korea Gas Corp. The Arab League's continuing boycott of Israel
and other political factors will, however, likely prevent most
international petroleum giants from working on Leviathan due to
their connections with the large oil-producing countries of the
Middle East and Persian Gulf, according to sector analysts.
Woodside specializes in deep water drilling, mainly in
Australia, and sells its petroleum products in Australia and
several East Asian countries. Leviathan, located off the coast of
northern Israel, isn't scheduled to begin production for several
years, but when it does, experts say, it will allow Israel energy
independence in addition to making it a net exporter of natural
gas. Another nearby reserve, Tamar, is scheduled to being producing
next year, and contains up to 9 trillion cubic feet of natural
gas.
Israel currently faces a natural gas shortage as its supply deal
with Egypt has broken down over the last two years, forcing local
energy producers to rely on more expensive sources of fuel and
pushing up electricity prices.
Noble holds 39.66% of Leviathan; Delek Group Ltd. (DLEKG.TV)
subsidiaries Delek Drilling Ltd. Partnership (DLEKG.TV) and Avner
Oil Exploration Ltd. Partnership (AVNR.L.TV) each hold 22.67%; and
Ratio Oil Exploration Ltd. Partnership (RRATI.L.TV) holds 15%.
At 1028 GMT, shares of Delek Drilling were up 0.43 shekels. or
3.38%, at ILS13.14; shares of Avner were up ILS0.026, or 2.95%, at
ILS2.30; and shares of Ratio were up ILS0.026, or 8.15%, at
ILS0.345, in a higher Tel Aviv market.
Write to Sara Toth Stub at realtimedesklondon@dowjones.com
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