Israeli Gas Opportunities · 2016. 12. 19. · Gas Opportunities. Status of Exploration &...

Shaul MeridorDirector GeneralMinistry of Energy

IsraeliGasOpportunities

Status of Exploration & Production Offshore Israel

Oil Field

Gas Field

Pipelines

Legend:

Production Platform-100

-

2000

Aphrodite/Ishai

Leviathan

Karish

Tanin

Dalit

Tamar

Tamar SW

Shimshon

Noa

MariB

10 gas fields were discovered

Recoverable gas reserves &

resources estimation:

> 30 TCF of gas

50 MMBL of condensate

3 gas fields were developed

Leviathan: first-gas in 2019

Israeli Regulation – Oil & Gas

Ministry of National

Infrastructure, Energy

and Water Resources

Ministry

of Finance

Ministry of

Environmental Protection

Ministry Petroleum

CommissionerNational Gas

Authority

Downstream

• Safety & engineering

Upstream

• G&G and Environment

• Safety & engineering

• Royalties- 12.5%

• Oil and gas profits levy

Israel’s fiscal system- Oil & Gas

- The levy will apply only after

return of 150% on investment.

- The levy is progressive - the

rate increases with the increase

in profits

- The formula is of the R factor type:

Profitability

Large gas field-High level of Profitability

Small gas field-Low level of profitability

Gas Export

Government Natural Gas Policy

• Securing supply of 540 BCM for domestic market

• Quotas per reservoir (50%-100%)

• Signed agreements in place, more in progress

• Signed:Jordan- 47 BCM

Egypt- 5 BCM

Export Agreements

•Discussed :

Egypt- 176 BCM

Turkey- 50-150 BCM

Export Options

1. Egypt

2. Jorden

3. Turkey

4. Palestinian

Authority

5. Europe

Turkey

Egypt

Jordan

Italy

Cyprus

Greece

Demand for Natural Gas in Israel by Sector (2014-2040)

• Coal restrictions

• Support of NG transmission

• Subsidies for industrial customers

• Long term planning

IHS, 2016

http://www.energy-sea.gov.il

• 24 exploration areas

• Size- max. 400 Km2 each

Offshore Bid Round

Incentives For Marginal

Fields :

Government pipeline from

platforms to shore (continental shelf)

http://www.energy-sea.gov.il

Principals of the Competitive Process

• Drill or drop – exploration license will be granted

for 3+3 year period.

• Encouraging competition – existing holders of

Tamar & Leviathan excluded from the bid.

http://www.energy-sea.gov.il

Financial Requirements

• Partnership's financial strength:

- Total assets of 400 million $.

- Shareholders' equity of 100 million $

- Guarantees: Deposit of 2.5 -10 million $.

http://www.energy-sea.gov.il

Professional Requirements

Requirements from Operator :

- Holding a minimum of 25% interest in the partnership.

- Offshore E&P experience.

Weights for Selecting Winners

Work Program (90%):• Commitment to drill during first 3 years

• Commitment to conduct geophysical and geological

surveys during first 3 years

Signature Bonus (5%)

General evaluation (5%):

• Experience

• Environmental performance

• Holding in other rights in Israel

• 15.11.16 - Bidding procedure opens.

• 15.2.16 - End of Q&A.

• 21.4.17 - Bidding procedure ends.

• 15.7.17- Winners announcement.

http://www.energy-sea.gov.il

Time table

Thank you