Israel, Egypt Revise Gas Sales Terms

Israel's export agreements with Egypt's Dolphinus Holdings covering some of the production from its Tamar and Leviathan fields have been revised, partner Delek Drilling announced October 2 in a Tel Aviv stock exchange filing. The two contracts, for each gas field, have been extended from 10 to 15 years and the total gas quantity raised to 85bn m³ from 64bn m³. However the average annual quantity of gas was reduced from 6.4bn m³ to 5.66bn m³.

Leviathan, the larger of the two fields, will supply 60bn m³, up from 32bn m³, starting January 1, 2020 with 2.1bn m³ until June 30; and from July 1 2020, it will deliver 3.6bn m³/yr for two years and thereafter 4.7bn m³/yr.

The Tamar Partnership will supply about a fifth less than planned, 25.3bn m³ instead of 32bn m³. The export will start at the end of next June and for the first two years Tamar will supply 1bn m³/yr and from July 1, 2022 it will supply 2bn m³/yr.

The two contracts are firm contracts with the conventional take-or-pay mechanism and indexed to the price of Brent crude. The remaining conditions for closing the transaction are obtaining export approval from Israeli energy and tax authorities, which is expected to be received by the time the commercial gas stream starts.