Gas Opportunities Shaul Meridor Director General Ministry of - - PowerPoint PPT Presentation

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Gas Opportunities Shaul Meridor Director General Ministry of - - PowerPoint PPT Presentation

Oct 09, 2022 306 likes •470 views

Israeli Gas Opportunities Shaul Meridor Director General Ministry of Energy Status of Exploration & Production Offshore Israel 10 gas fields were discovered - 2000 Karish Aphrodite/Ishai Recoverable gas reserves & Tanin

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SLIDE 1

Shaul Meridor

Director General

Ministry of Energy

Israeli Gas Opportunities

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SLIDE 2

Status of Exploration & Production Offshore Israel

Oil Field Gas Field Pipelines

Legend:

Production Platform

  • 100
  • 2000

Aphrodite/Ishai

Leviathan

Karish Tanin Dalit

Tamar

Tamar SW Shimshon Noa MariB

  • 10 gas fields were discovered
  • Recoverable gas reserves &

resources estimation: > 30 TCF of gas 50 MMBL of condensate

  • 3 gas fields were developed
  • Leviathan: first-gas in 2019
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SLIDE 3

Israeli Regulation – Oil & Gas

Ministry of National Infrastructure, Energy and Water Resources Ministry

  • f Finance

Ministry of Environmental Protection Ministry Petroleum Commissioner National Gas Authority

Downstream

  • Safety & engineering

Upstream

  • G&G and Environment
  • Safety & engineering
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SLIDE 4
  • Royalties- 12.5%
  • Oil and gas profits levy

Israel’s fiscal system- Oil & Gas

  • The levy will apply only after

return of 150% on investment.

  • The levy is progressive - the

rate increases with the increase in profits

  • The formula is of the R factor type:
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SLIDE 5

Profitability

Large gas field- High level of Profitability Small gas field- Low level of profitability

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SLIDE 6

Gas Export

  • Government Natural Gas Policy
  • Securing supply of 540 BCM for domestic market
  • Quotas per reservoir (50%-100%)
  • Signed agreements in place, more in progress
  • Signed:

Jordan- 47 BCM Egypt- 5 BCM

  • Export Agreements
  • Discussed :

Egypt- 176 BCM Turkey- 50-150 BCM

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SLIDE 7

Export Options

  • 1. Egypt
  • 2. Jorden
  • 3. Turkey
  • 4. Palestinian

Authority

  • 5. Europe

Turkey Egypt Jordan Italy Cyprus Greece

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SLIDE 8

Demand for Natural Gas in Israel by Sector (2014-2040)

  • Coal restrictions
  • Support of NG transmission
  • Subsidies for industrial customers
  • Long term planning

IHS, 2016

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SLIDE 9

http://www.energy-sea.gov.il

  • 24 exploration areas
  • Size- max. 400 Km2 each

Offshore Bid Round

  • Incentives For Marginal

Fields :

Government pipeline from platforms to shore (continental shelf)

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SLIDE 10

http://www.energy-sea.gov.il

Principals of the Competitive Process

  • Drill or drop – exploration license will be granted

for 3+3 year period.

  • Encouraging competition – existing holders of

Tamar & Leviathan excluded from the bid.

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SLIDE 11

http://www.energy-sea.gov.il

Financial Requirements

  • Partnership's financial strength:
  • Total assets of 400 million $.
  • Shareholders' equity of 100 million $
  • Guarantees: Deposit of 2.5 -10 million $.
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SLIDE 12

http://www.energy-sea.gov.il

Professional Requirements

Requirements from Operator :

  • Holding a minimum of 25% interest in the partnership.
  • Offshore E&P experience.
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SLIDE 13

Weights for Selecting Winners

  • Work Program (90%):
  • Commitment to drill during first 3 years
  • Commitment to conduct geophysical and geological

surveys during first 3 years

  • Signature Bonus (5%)
  • General evaluation (5%):
  • Experience
  • Environmental performance
  • Holding in other rights in Israel
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SLIDE 14
  • 15.11.16 - Bidding procedure opens.
  • 15.2.16 - End of Q&A.
  • 21.4.17 - Bidding procedure ends.
  • 15.7.17-

Winners announcement.

http://www.energy-sea.gov.il

Time table

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SLIDE 15

Thank you