Israel approves a major agreement on the exploitation of natural gas – Liberation

The Israeli government on Sunday approved a major agreement with a consortium of American Noble Energy on the exploitation of Israeli natural gas reserves in the Mediterranean, the prime minister’s office said .

The deal, announced Thursday, is expected to overcome the months of uncertainty and wrangling that slowed the operation of a richness that Israel expected economic impact, and perhaps strategic considerable. It remains subject to political risks as possible approval by Parliament.

“This money will benefit the education, health, social security and other domestic needs,” Prime Minister Benjamin Netanyahu said before the vote the government.

Noble Energy Delek Group and Israel since 2013 together operate the Tamar gas field, about 80 km off Haifa. They are also involved in developing Leviathan, the largest gas field in the Mediterranean, whose operation at 130 km off the coast of Haifa will begin when the reserves of Tamar will begin to dry up.

The agreement stipulates that Delek sold within six years Tamar its share (31%) and provides that Noble reduce his from 36-25% to no longer be the largest shareholder.

The agreement also covers two essential points. The price of gas will be reported to an index of energy costs between the public and the private, which should mean lower rates compared to previous agreements with Noble Energy and Delek Group.

Furthermore, the consortium must commit to investing $ 1.5 billion in the development of Leviathan in the next two years. Otherwise, the government would no longer be bound by a commitment not to touch until 2025 to fiscal and structural regulation of the gas industry.

Earlier agreements between the two sides were handed at issue in recent months by the authority of the Israeli competition, causing the opening of new negotiations under strong political pressure.

The Netanyahu government is pushing with all his might to speed the exploitation of natural gas in the Mediterranean. His inner cabinet had ended in June the exceptional decision to declare the exploitation of this manna to fall within the national security, thus escaping the laws against monopolies.

“The real interests of the state of Israel require the approval of this Plan as soon as possible, “Netanyahu said on Sunday that has a majority of votes in Parliament.