Chinese Conglomerate Interested in Buying Israel's Karish, Tanin Gas Fields

Fosun International Limited, a large Chinese conglomerate, might be interested in purchasing two small gas fields off Israel shores: Karish and Tanin, as reported by Calcalist, an Israeli business daily.

According to the natural gas regulatory framework, the two gas fields, up to 80 bcm, will have to be sold off by their current owners, Noble Energy and Delek Group. The two groups currently hold a monopoly in the Israeli natural gas industry.

Last month Delek Group bought the rights to sell Noble Energy's stake in the gas fields for $67.5 million, valuing the two fields at about $145 million.

According to the report, Fosun would pay about $250 million, an amount that would bring in $100 million in profits for Delek Group.

Fosun and Delek Group are now in the final stages of completing a $430 million transaction in which the Chinese conglomerate will purchase Phoenix, one of Israel's biggest insurance companies. So far Fosun has no activity in the energy sector.

Last month it was reported that another Chinese conglomerate, Hutchison Whampoa, which also has commercial ties to Delek Group, is interested in the acquiring the two gas fields.

An official from Edison, another perennial candidate to buy the two fields, told Natural Gas Europe that his company is not interested in the deal due to lack of a clear-cut regulatory regime in Israel.

Ya'acov Zalel