Back to the complete issue
Tuesday, 17 September 2019

Noble, Delek say natural gas agreement with Egypt going according to plan to calm investor concerns

Noble, Delek attempt to allay fears of gas export delays to Egypt: The USD 15 bn agreement with Egypt is “advancing as it should,” Israel’s Noble Energy and Delek Drilling said on Sunday, according to Eran Azran’s op-ed piece in Haaretz. The statements follow those made by US Deputy Energy Secretary Dan Brouillette to a group of reporters, including Enterprise, last Thursday that the implementation of the natural gas agreement between Israel and Egypt has been delayed because of security concerns and some infrastructure that still needed to be repaired. Oil Minister Tarek El Molla threw the two companies a bone last week when he said that Egypt expects to begin receiving natural gas from Israel by the end of the year. Tamar Petroleum, whose shares have dropped 50% since it went public, saw its shares rise 8% last following El Molla’s comments. However, El Molla’s estimate of 2 bcm of Israeli gas per year falls short of the 7 bcm figure that was initially mentioned in the agreement, deepening worries amongst investors, including Delek Drilling, which has stakes in the Tamar and Leviathan fields, Azran suggests.

Background: Israel’s Noble Energy and Delek Drilling agreed last year to export natural gas to Egypt through Alaa Arafa-led Dolphinus Holding, a milestone move that bodes well for our intentions to become a major energy hub in the region. Trial shipments from Israel’s Tamar and Leviathan gas fields were originally supposed to come in March of this year, but capacity restrictions posed by Israel’s domestic pipeline network meant that the imports had to be delayed. Delek later said that it would begin commercial natural gas sales to Egypt by the end of June. When it didn’t, Israeli Energy Minister Yuval Steinitz came out to say the holdup was a result of Israel’s “complex regulatory regime.” Israel’s antitrust regulator agreed last month to let partners Noble Energy and Delek Drilling buy into the EMG pipeline.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.