Partners in Tamar split on new natural gas sale to Israel Electric
Some of the partners in Israel’s Tamar natural gas site have agreed to sell an additional 2 billion cubic meters of gas to state utility Israel Electric Corp. (IEC) for about $290 million, one of the partners said.
Isramco Negev said in a regulatory filing in Tel Aviv the purchase price would be lower than in the initial agreement and that it would be joined by partners Tamar Petroleum and Alon Natural Gas Exploration.
It said other partners in Tamar, Noble Energy and Delek Drilling, were offered to participate.
In a separate filing, Delek Drilling said the deal went against another supply agreement IEC had signed with partners in the larger Leviathan gas field, which include Delek and Noble. Delek said it was reviewing its options.
IEC in 2011 signed a deal to buy $8 billion of gas from Tamar for 15 years starting in mid-2013 when production began. It also agreed in 2019 to buy 4 BCM, or $700 million, of gas from Leviathan in an interim deal until mid-2021 or when the Karish field comes online.
IEC declined to comment.
Reporting by Steven Scheer; Editing by Tova Cohen
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