Aaron Frankel exercised the option to purchase 11% of the Tamar reservoir from the Government Investment Fund

Posted on Dec 25, 2022 by Ifi Reporter

Businessman Aaron Frankel exercised the option to purchase 11% of the Tamar reservoir from the Government Investment Fund of Abu Dhabi for $522 million through Union Energy. Frankel completed the purchase after the rest of the companies that own the Tamar reservoir announced that they intend to expand gas production from the project in favor of exporting gas to Europe through Egypt - a more profitable production channel for them compared to selling gas to customers in Israel.
About a year ago, Mubadala completed the purchase of 22% of the Tamar reservoir from New Med Energy (formerly Delek Kedihim controlled by Yitzhak Tshuva) for about one billion dollars. As part of the gas outline, it was mandatory to sell New Med Energy's stake in the Tamar reservoir to enable competition between the Tamar reservoir and the Leviathan reservoir, in which New Med Energy owns approximately 45%.
The purchase deal of 22% in the Tamar reservoir by Movdala was carried out through two subsidiaries, one of which had an option to sell its holdings in the reservoir to Frankel. The transaction will be financed through nine international and Israeli banks.
Earlier this month, the partner companies announced that they will expand gas production in the reservoir - so that more gas can be exported. For this purpose, the companies that own Tamar have announced that they will invest 673 million dollars in the project to expand gas production from the reservoir until 2025, and in the future will examine another expansion of the reservoir that will allow them to further increase the export of gas to Egypt - which is more profitable than selling gas to customers in Israel.
Unlike the Leviathan reservoir, the partners in Tamar sell most of the gas from the reservoir to Israel, so they benefit less from the surge in natural gas prices worldwide following the war waged by Russia in Ukraine. In the first three quarters of this year, all partners in the Tamar reservoir sold 6.98 billion cubic meters (BCM) of natural gas to the local market and another 0.95 BCM for export - mainly to Egypt. For comparison, in the same period the Leviathan reservoir sold 8.54 BCM of gas, and 65% of it was sold to customers in Egypt and Jordan.
Until now, the Tamar reservoir has been owned by Chevron (25%), which also operates it, Isramco (28.75%), Mobdala from Abu Dhabi (22%), Tamar Petroleum (16.75%), Dor Gas (4%) and Everest (3.5%). After the deal is completed, Mubadala and Frankel will hold equal shares of 11% in the pool.
The issue of expanding gas exports from Israel to other countries is heavily criticized, given the fear that in about a decade and a half there will not be enough gas left in the Israeli reservoirs to meet the needs of the local market. But despite the companies' announcement, the Ministry of Energy has not yet granted permission to expand production at Tamar for the benefit of exports.


ABOUT IFI TODAY

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum

Newsline

Former Democratic Senator Joe Lieberman Passes Away at 82 - fell at home

Mar 28, 2024 by Ifi Reporter

The political arena mourns the loss of former Democratic Senator Joe Lieberman, who passed away yesterday at the age of 82. Lieberman, a trailblazer in American politics, made history as the first religious Jewish senator in US history. He leaves behind a legacy marked by his unwavering... Continue reading →

Terrorist Attack Targets Civilians on Route 90 Near Oja in the Jordan valley

Mar 28, 2024 by Ifi Reporter

In a harrowing incident earlier this morning, a shooting attack rocked Route 90 near Oja in the Jordan valley. According to initial reports, a terrorist ambushed a passing bus in the area, unleashing a barrage of gunfire before fleeing the scene. The attack, believed to be premeditated, left a... Continue reading →

Nationwide High School Strike Declared in Israel Amidst Salary Dispute

Mar 27, 2024 by Ifi Reporter

The National Student and Youth Council, alongside parent leaders, issued a stern announcement on Wednesday, declaring a strike in all high schools across Israel starting Thursday. This drastic action follows the failure of negotiations between the teachers' organization and the Ministry of... Continue reading →


Testimonials

No testimonials. Click here to add your testimonials.