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