Israeli Minister Takes to the Road

Israel energy minister, Yuval Steinitz, is visiting Singapore and London in a roadshow to tempt investors to take part in the next licensing round offshore Israel. Tenders are expected to go out in November.

Israel's energy minister (Credit: Ya'acov Zalel)

Steinitz met energy companies' and financial institutions' executives to present them with the discoveries' potential and a list of incentives. In the past Steinitz has said that he is not going after the majors but for medium-size E&P companies.

Steinitz's main mission is to kick-start the development of small gas fields and in doing so to create competition in the domestic market. One step in this direction was accomplished when last month Energean, the Greek energy company, bought Karish and Tanin from Delek Group for $148.5mn plus royalties. The deal has still to be approved by the regulators.

Calcalist, a business daily, reported that Steinitz would present potential investors with incentives and sweeteners. Israel, according to the report will invest up to NIS 500mn ($133mn) in offshore pipelines. So far the energy companies have had to make their own arrangements for landing the gas. Another option being considered is the creation of a buying consortium for the gas, a move that will ease the burden of gas sales by lumping up demand into worthwhile quantities while spreading risk among a number of buyers.

Ya'acov Zalel