Texas-based Noble energy announced that warning of Israel's Antitrust superior to drop company consortium to inhibit natural gas monopoly is a harmful precedent for Israel to set and company will vigorously defend its rights relating to its assets
David Gilo, Israel's antitrust commissioner, announced on Tuesday that he could cancel the deal with stakeholders to prevent being monopoly in Leviathan field located in east Mediterranean.
Noble energy proclaimed with a press release that Noble Energy and its partners in the Leviathan field were advised by the Israel Anti-trust Authority of its decision to not submit the Consent Decree to the Anti-trust Tribunal for final approval.
Press release said, Noble Energy and partners have requested a hearing on the topic with the Anti-trust Authority, which Noble Energy expects to occur in the next few weeks.
'Noble Energy, its partners, and the Anti-trust Authority reached agreement for the Consent Decree that included the divestiture of the Tanin and Karish gas fields in March 2014' press release announced.
According to Noble energy this agreement is a key component for the final investment decision on the Leviathan development.
Energy companies Delek and Noble are stakeholders with 85 percent in Leviathan field, one of the biggest hydrocarbon discoveries in recent years, and they are expecting to produce gas in 2018.
Charles D. Davidson, Noble Energy's Chairman said: 'The actions of the Anti-trust Authority are another disturbing example of the uncertain regulatory environment in Israel. We believe this is a harmful precedent for Israel to set and we will vigorously defend our rights relating to our assets.'
'Final resolution of this item, as well as a number of other regulatory matters, is required before we proceed with additional exploration or development investments in our Israel business.' David L. Stover, President and Chief Executive Officer of Noble Energy, said in press release.
The Leviathan gas field has 621 bcm of natural gas reserves, which is located at the west of Haifa, Israel's third largest city. Noble Energy owns almost 40 percent of the gas field. Both Delek Drilling and Avner Oil from Israel have a 23 percent share and Ratio Oil Exploration has a 15 percent interest.
A new natural gas field was also discovered containing about 90 billion cubic meters offshore Israel, Israel Opportunity Energy Resources and Ratio Oil Exploration Ltd. announced on December 14.
By Muhsin Baris Tiryakioglu