HOUSTON, Sept. 9 (UPI) -- Parliamentary support for a framework agreement for Israeli oil and gas development is a welcome step, but full backing is needed, Noble Energy said.
The Israel Antitrust Authority ruled that Israeli energy company Delek Group and its partners at Noble Energy, which has headquarters in Texas, control all of the gas reservoirs off the nation's coast. A compromise deal from 2014 called on Noble and Delek to sell their stakes in the Karish and Tanin fields off the coast of Israel, which combine for an average 20.5 trillion cubic feet of reserves, in exchange for maintaining their holdings in Leviathan and Tamar, two of the largest gas fields in the Mediterranean Sea.
On Monday, the Knesset, the Israeli parliament, voted in favor of a framework agreement that would usher in development of natural gas reserves.
"It is imperative that the government of Israel now act upon this support and follow through on this approved framework without further delay," Noble Chairman David Stover said in a statement. "Noble Energy remains prepared to conclude the negotiation of gas sales contracts, both in Israel and the regional market, and reengage project teams to advance the expansion of Tamar and initial development of Leviathan toward sanction."
Leviathan and Tamar combine for an estimated 28 trillion cubic feet of natural gas reserves, with Leviathan accounting for more than half of the aggregate.
Israeli Prime Minister Binyamin Netanyahu last month expressed his support for the agreement, saying full development of offshore natural gas reserves would be "for the benefit of the citizens of Israel."
Stover concurred, saying full exploitation would bring net benefits to the Israeli economy.
"Development of these major projects will allow Israel to bring a second source of natural gas to the country and realize significant additional revenues, while meeting substantial underserved regional gas needs," he said.
