Engagement in a Non-Binding LOI for the Supply of Natural Gas from the Leviathan Project to Edeltech Ltd. - DELEK GROUP

Tel Aviv, January 17, 2017.

Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) provides below an Immediate Report published by each of Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership ("the Partnerships") with regard to an engagement in a non-binding LOI for the supply of natural gas from the Leviathan project to Edeltech Ltd.

Further to the provisions of Section 7.14.1 of the Partnerships’ periodic report as of December 31, 2015, as released on March 28, 2016 (the “Periodic Report”) regarding the conduct of negotiations of the partners in the Leviathan project including the Partnerships (the “Leviathan Partners”) for the marketing of natural gas and condensate to potential offtakers in the domestic economy, the Partnerships hereby respectfully announce as follows:

EMG denies deal to transport Leviathan gas to Egypt | Globes

30/11/2015, 13:50
Hedy Cohen Last week, a letter of intent was reported on selling Israeli gas from Leviathan to Egypt's Dolphinus Holdings via EMG's pipeline.
A question mark has arisen over the deal for the sale of gas from Israel's Leviathan reserve to Egypt. EMG (East Mediterranean Gas Company), which operates the gas pipeline between Egypt and Israel that is supposed to be used to transport gas under the agreement between the Leviathan partners and Egyptian company Dolphinus Holdings, says that it has no knowledge of such a deal or even of negotiations towards one.


"EMG is not a party to and is not aware of the deal reported between the Leviathan partners and Dolphinus or any other third party, and it has not participated in any such negotiations," the company stated, "For the removal of doubt, no talks are taking place between EMG and Dolphinus on such a deal and there have been no negotiations on the matter in the past. EMG protests forcefully against the repeated use of its name without its consent, which is apparently intended to serve the interests of third parties."

Nonetheless, sources close to the Leviathan partnership say that "this is another move in Yossi Maiman's battle in the arbitration in which he is involved against the Egyptian government, and it does not represent the generality of EMG's shareholders."

Yosef (Yossi) Maiman, formerly controlling shareholder in Ampal-American Israel Corporation, which holds a 12.5% stake in EMG, is attempting to obtain compensation from the government of Egypt for the cancellation of the contract to supply Egyptian gas to Israel.

The sources added: "Dolphinus has signed a letter of intent with most of the shareholders in EMG, and as we speak a meeting is being held in London between representatives of Dolphinus and of EMG on using the gas pipeline."



Last week, with very surprising timing (at the height of the battle over the gas agreement between the Israeli government and the gas exploration companies and at the start of the discussion on the agreement in the Knesset Economic Affairs Committee), the Leviathan partnership announced a non-binding understanding for the sale of gas from Leviathan to Egypt amounting to up to 4 billion BCM annually for 10-15 years. According to the announcement, the intention is to transport the gas via the Israel Natural Gas Lines system to Ashkelon and from there to Egypt via EMG's pipeline.

The letter of intent was welcomed my Minister of National Infrastructures, Energy and Water Yuval Steinitz.

Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2015 © Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Source: http://www.globes.co.il/en/article.aspx?did=1001084689&from=iglobes

Delek Group: Letter of Intent to export natural gas from the Leviathan project for consumers in Egypt | Your Oil & Gas News

Wednesday, Nov 25, 2015

Delek Group (TASE: DLEKG, US ADR: DGRLY) ("the Company") announces that attached is an Immediate Report just published by Avner Oil Exploration Limited Partnerships and Delek Drilling Limited Partnerships ("the Partnerships") concerning a Letter of Intent for the export of natural gas from the Leviathan Project to Egyptian consumers.

Pursuant to what was stated in section 7.14.2 of the Partnerships' Periodic Report to December 31, 2014 that was published on March 18, 2015 (ref. no. 2015-01-054505, 2015-01-054526) ("the Periodic Report") in respect of contacts and/or negotiations between the Leviathan project partners including the Partnerships ("the Leviathan Partners") with various parties in respect of exporting natural gas from the Leviathan Project, the Partnerships announce as follows:

On November 24, 2015 a non-binding letter of intent was signed between the Leviathan Partners and Dolphinus Holdings Limited ("Letter of Intent" and "the Buyer", respectively), in which the parties confirmed their intention to carry out negotiations on an agreement for the supply of natural gas ("the Binding Agreement") from the Leviathan Project to the Buyer using the existing gas pipeline operated by East Mediterranean Gas Limited ("EMG").

The Letter of Intent includes several commercial conditions for the proposed potential transaction, which will serve as a basis for negotiating the Binding Agreement. The estimated scope of the Binding Agreement is the supply of 4 BCM (billion cubic meters) per annum for a period of 10-15 years. The parties' intention is that the natural gas be transported using the transmission system of Israel Natural Gas Lines Ltd ("Natgaz") to Ashkelon and from there to the local market in Egypt using the existing pipeline operated by EMG.

The price of gas that is set in the Letter of Intent is similar to the prices set in other agreements for the export of gas from Israel to regional markets and is essentially based on a formula that includes linkage to the price of a barrel of Brent oil and includes a "floor price".




According to the Letter of Intent, the Binding Agreement (if it will be signed) will be subject to several contingent conditions, including approval of the development plan for the Leviathan field and final investment decision (FID) by the Leviathan Partners, signing of a transmission agreement between the Leviathan Partners and Natgaz,signing of a transmission agreement between the Buyer and EMG that will facilitate the transmission of gas to Egypt using the EMG pipeline, receipt of the approvals required from the authorities in Israel including the required approvals according to the Anti Trust Law, and receipt of the approvals required from the authorities in Egypt. It is stipulated that the Letter of Intent is not binding and the transaction described above shall be subject to completion of negotiations between the parties and signing of the Binding Agreement.

To the best of the Partnerships' knowledge, the Buyer represents a consortium of major Egyptian non-governmental industrial and commercial gas consumers, gas distributors and entrepreneurs.

It should be noted that the Binding Agreement, if it is signed, is in addition to the supply agreement signed between the Buyer and the Tamar Project partners, including the Partnerships, as stated in section 7.13.5(A)(3) of the Periodic Report.

It is also stipulated that the above Letter of Intent and the Binding Agreement (if signed) are in addition to the negotiations of the Leviathan Partners with BG International Limited and National Electric Power Company Limited as stated in section 7.13.5(B) of the Periodic Report, and that the parties are working to complete the negotiations and to formulate binding agreements.

About The Delek Group

The Delek Group, Israel's dominant integrated energy company, is the pioneering leader of the natural gas exploration and production activities that are transforming the Eastern Mediterranean's Levant Basin into one of the energy industry's most promising emerging regions. Having discovered Tamar and Leviathan, two of the world's largest natural gas finds since 2000, Delek and its partners are now developing a balanced, world-class portfolio of exploration, development and production assets with total gross natural gas resources discovered since 2009 of approximately 40 TCF.


In addition, Delek Group has a number of assets in downstream energy, water desalination, and in the finance sector.


For more information, please visit : http://www.delek-group.com


Source: http://www.youroilandgasnews.com/delek+group%3A+letter+of+intent+to+export+natural+gas+from+the+leviathan+project+for+consumers+in+egypt_124329.html

NOBLE ENERGY ANNOUNCES LETTER OF INTENT FOR LEVIATHAN EXPORT / Noble Energy

June 30, 2014

NOBLE ENERGY ANNOUNCES LETTER OF INTENT FOR LEVIATHAN EXPORT

Agreement to Provide Substantial Natural Gas to BG LNG Facility

HOUSTON, June 30, 2014 /PRNewswire/ -- Noble Energy, Inc. (NYSE: NBL) today announced the execution of a non-binding Letter of Intent (LOI) between the Leviathan field partners and BG International Limited (BG) for the supply of natural gas from the Leviathan field, offshore Israel, to BG's existing natural gas liquefaction (LNG) facilities in Egypt.  The LOI contemplates a total gross sales quantity of up to 3.75 trillion cubic feet (Tcf) of natural gas over a 15-year period, or the equivalent of approximately 700 million cubic feet per day over the term.  Delivery of the natural gas to BG is expected at the outlet of the Leviathan floating, production, storage, and offloading vessel, with planned connection to the LNG facilities by way of subsea pipeline.

Keith Elliott, Noble Energy's Senior Vice President, Eastern Mediterranean, commented, "The LOI for the export of natural gas from Leviathan is a very positive development for the project and continues to evidence the strong demand for our discovered resources.  Phase 1 of the Leviathan project is designed to provide significant quantities of natural gas to Israel and regional markets.  This transaction, in combination with regional cooperation, will also provide access for Eastern Mediterranean gas into global markets.  Negotiations with other potential customers for Leviathan natural gas are progressing, and I anticipate additional agreements to be executed this year in support of the development of the first phase of Leviathan."

A final gas purchase and sales agreement is to be negotiated and will be subject to the receipt of regulatory approvals in Israel and Egypt.

Noble Energy operates Leviathan with a 39.66 percent working interest.  Other interest owners are Delek Drilling with 22.67 percent, Avner Oil Exploration with 22.67 percent, and Ratio Oil Exploration (1992) Limited Partnership with the remaining 15 percent.  The Leviathan field has an estimated 19 Tcf of discovered natural gas resources.

Noble Energy is a leading independent energy company engaged in worldwide oil and natural gas exploration and production.  The Company has core operations onshore in the U.S., primarily in the DJ Basin and Marcellus Shale, in the deepwater Gulf of Mexico, offshore Eastern Mediterranean, and offshore West Africa.  Noble Energy is listed on the New York Stock Exchange and is traded under the ticker symbol NBL.  Further information is available at www.nobleenergyinc.com.

This news release contains certain "forward-looking statements" within the meaning of federal securities law.  Words such as "anticipates," "believes," "expects," "intends,"  "will," "should," "may," and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect Noble Energy' s current views about future events. They include estimates of oil and natural gas reserves and resources, estimates of future production, assumptions regarding future oil and natural gas pricing, planned drilling activity, future results of operations, projected cash flow and liquidity, business strategy and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected, and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, without limitation, the volatility in commodity prices for crude oil and natural gas, the presence or recoverability of estimated reserves, the ability to replace reserves, environmental risks, drilling and operating risks, exploration and development risks, competition, government regulation or other actions, the ability of management to execute its plans to meet its goals and other risks inherent in Noble Energy's business that are discussed in its most recent annual report on Form 10-K and in other reports on file with the Securities and Exchange Commission. These reports are also available from Noble Energy's offices or website,http://www.nobleenergyinc.com. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Noble Energy does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change. 

The Securities and Exchange Commission requires oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The SEC permits the optional disclosure of probable and possible reserves, however, we have not disclosed the Company's probable and possible reserves in our filings with the SEC. We use certain terms in this news release, such as "discovered natural gas resources," which are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. Investors are urged to consider closely the disclosures and risk factors in our most recent annual report on Form 10-K and in other reports on file with the SEC, available from Noble Energy'soffices or website, http://www.nobleenergyinc.com.  

SOURCE Noble Energy

News Provided by Acquire Media

Link to source: http://investors.nobleenergyinc.com/releasedetail.cfm?ReleaseID=856984

Noble Energy Announces Letter Of Intent With Union Fenosa Gas For The Export Of Tamar Natural Gas To Existing LNG Facility | PR Newswire

Noble Energy Announces Letter Of Intent With Union Fenosa Gas For The Export Of Tamar Natural Gas To Existing LNG Facility

 

Noble Energy logo. (PRNewsFoto/Noble Energy, Inc.)

HOUSTON, May 5, 2014 /PRNewswire/ -- Noble Energy, Inc. (NYSE: NBL) today announced the execution of a non-binding Letter of Intent (LOI) between the Tamar field partners and Union Fenosa Gas SA (UFG) for the supply of natural gas from Tamar, offshore Israel, to UFG's existing natural gas liquefaction facilities in Egypt.  The LOI contemplates a contract term of 15 years and a total gross sales quantity of up to 2.5 trillion cubic feet (Tcf) of natural gas, or approximately 440 million cubic feet per day over the period. 

Keith Elliott, Noble Energy's Senior Vice President, Eastern Mediterranean, commented, "This LOI with Union Fenosa Gas represents a major milestone for our Tamar asset and is indicative of the strong regional demand for natural gas.  The associated expansion of the Tamar field facilities, subject to final investment decision of the Tamar partners, will not only enable substantial regional exports, but it will also increase the capacity for natural gas deliveries to Israel's domestic market.  Building on the recent agreements with the Palestinian Power Generation Company, as well as the Arab Potash and Jordan Bromine Companies, this agreement continues to demonstrate our ability to accelerate value and strengthen economic growth for stakeholders across the Eastern Mediterranean region."

The price for the natural gas sold will be similar to the contract price in other natural gas sales and purchase agreements for regional export sales from Israel and is based mainly on a linkage to Brent oil prices.  All parties are targeting to finalize a binding agreement within a period of six months, which will be subject to the receipt of regulatory approvals in Israel and Egypt.

Noble Energy operates Tamar with a 36 percent working interest.  Other interest owners are Isramco Negev 2 with 28.75 percent, Delek Drilling with 15.625 percent, Avner Oil Exploration with 15.625 percent, and Dor Gas Exploration with the remaining four percent.  The Tamar field has an estimated 10 Tcf of discovered natural gas resources.

Noble Energy is a leading independent energy company engaged in worldwide oil and gas exploration and production.  The Company has core operations onshore in the U.S., primarily in the DJ Basin and Marcellus Shale, in the deepwater Gulf of Mexico, offshore Eastern Mediterranean, and offshore West Africa.  Noble Energy is listed on the New York Stock Exchange and is traded under the ticker symbol NBL.  Further information is available at www.nobleenergyinc.com.

This news release contains certain "forward-looking statements" within the meaning of federal securities law.  Words such as "anticipates," "believes," "expects," "intends,"  "will," "should," "may," and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect Noble Energy' s current views about future events. They include the execution of definitive agreements between the Leviathan partners and Woodside, estimates of oil and natural gas reserves and resources, estimates of future production, assumptions regarding future oil and natural gas pricing, planned drilling activity, future results of operations, projected cash flow and liquidity, business strategy and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected, and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, without limitation, the volatility in commodity prices for crude oil and natural gas, the presence or recoverability of estimated reserves, the ability to replace reserves, environmental risks, drilling and operating risks, exploration and development risks, competition, government regulation or other actions, the ability of management to execute its plans to meet its goals and other risks inherent in Noble Energy's business that are discussed in its most recent annual report on Form 10-K and in other reports on file with the Securities and Exchange Commission. These reports are also available from Noble Energy's offices or website, http://www.nobleenergyinc.com. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Noble Energy does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

The Securities and Exchange Commission requires oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The SEC permits the optional disclosure of probable and possible reserves, however, we have not disclosed the Company's probable and possible reserves in our filings with the SEC. We use certain terms in this news release, such as "discovered natural gas resources," which are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. Investors are urged to consider closely the disclosures and risk factors in our most recent annual report on Form 10-K and in other reports on file with the SEC, available from Noble Energy's offices or website, http://www.nobleenergyinc.com. 

SOURCE Noble Energy


RELATED LINKS
http://www.nobleenergyinc.com


Link to source: http://www.prnewswire.com/news-releases/noble-energy-announces-letter-of-intent-with-union-fenosa-gas-for-the-export-of-tamar-natural-gas-to-existing-lng-facility-258001741.html