The companies operating Israel’s Tamar natural gas field are in talks to boost the quantities they will sell to Union Fenosa Gas, according to a person familiar with the matter.
The Tamar partners, led by Noble Energy and Delek Group, are discussing the sale of 6bn cubic metres (bcm) of gas per year, said the person, who asked for anonymity because the talks are private.
The companies had signed a non-binding agreement in 2014 for about 4.5 bcm over 15 years. That deal was never consummated, however, as delays in finalising a governmental framework for Israel’s budding natural gas industry froze progress in export talks. The companies also are discussing a new pricing arrangement, such as introducing floor prices, the person said. The Tamar partners and UFG will sign a contract within a couple of months, the person said.
A spokeswoman for the Tamar partners declined to comment. UFG didn’t immediately reply to Bloomberg requests by e-mail and telephone seeking comment. As part of the deal being discussed, UFG will also drop its outstanding arbitration case against Egypt, the person said. UFG, which is a joint venture between Spain’s Gas Natural and Italy’s Eni, has been in a legal fight since 2013 with an Egyptian state-owned gas company over a broken supply contract.
Through its units, Delek Group owns 31% of the Tamar field, Isramco Negev 2 holds 29% and Dor Alon Energy in Israel Ltd owns 4%. Houston, Texas-based Noble owns a 36% stake, though it agreed in July to sell 3% to Harel Insurance Investments & Financial Services Ltd.