Israel's Tamar Partners Sign Letter of Intent with Egypt's Dolphinus Holdings

Israel’s Tamar Partners have signed a letter of intent (LoI) with Egypt’s Dolphinus Holdings Limited to supply five billion cubic meters (bcm) of natural gas, Delek Group, one of the partners in Tamar field, said on Sunday.

Dolphinus represents a consortium of major Egyptian non-governmental industrial and commercial gas consumers, gas distributors and entrepreneurs.

The gas will be exported using the existing gas pipeline operated by East Mediterranean Gas Ltd (EMG Pipeline).

The gas supply will be on an interruptible basis of quantities of surplus gas available to the Tamar Partners from the Tamar Project. “Since the supply is on an interruptible basis, the buyer is not bound to purchase minimum quantities. The Tamar Partners estimate that if the Binding Agreement is signed and its prior conditions are fulfilled, the buyer will purchase a significant share of the above cumulative minimum quantity.”

The gas would be sold at a price comparable to other export agreements from Israel and based mainly on a linkage to Brent oil prices.

Partners in the Tamar Project and their percentage holdings are as follows:

Noble Energy Mediterranean Ltd. (36.00%), Isramco Negev 2 Limited Partnership (28.75%), Avner Oil Exploration - Limited Partnership (15.625%), Delek Drilling - Limited Partnership (15.625%), Dor Gas Exploration - Limited Partnership ( 4.00%)