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    Globes: Shell Acquisition of BG Jeopardizes Leviathan Deal

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Summary

Globes analysts have said that Israel's regulator must work quickly to save a deal it made with Egypt to export gas from Leviathan following Shell's BG purchase

by: Erica Mills

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Press Notes, Africa

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Globes: Shell Acquisition of BG Jeopardizes Leviathan Deal

Analysts warn that Israel's regulator must act fast to save the Leviathan partners $30 billion BG deal.

The acquisition by Royal Dutch Shell of British Gas (BG) jeopardizes the deal for exporting natural gas by the partners in the Leviathan reservoir to BG, according to Eco Energy CEO Amit Mor. "The geopolitical considerations of a giant company like Shell are different than those of BG," Mor says, adding that when Royal Shell considers the composition of its investment portfolio, it takes many factors into account, such as future business in Iran and other Arab countries, and says, "I'm not sure how much Royal Shell will want to be linked with Israel."

Mor was referring to the letter of intent signed last June by the Leviathan partners with BG, under which the Leviathan reservoir is due to supply 105 BCM of gas to the BG liquefaction facility in Idku, Egypt over 15 years. The value of the deal is estimated at $30 billion. 

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