Photo: Albatross

IEC eyes Cyprus gas exploration

Israel Electric cooperation to join partners in seeking license for Cyprus gas drills

Over the past weeks, Israel Electric Corporation (IEC) has been conducting talks to participate in a Cypriot government gas exploration tender, which includes 12 licenses off the coast of an island where seismic surveys indicated a high probability for natural gas reserves.


The deadline for bids was set for May. Information obtained by Calcalist reveals that the IEC is holding talks with Nochi Dankner's Modiin Energy, Haim Tsuff's Isramco and US ATP which already has operations in Israel.


The IEC is prohibited from submitting an independent bid as it might have trouble raising the capital for such an endeavor – about $100 million per drilling and billions of dollars for production – given its current financial situation.


The IEC's move indicates that it prefers to secure independent energy resources and reduce its dependency on the gas expected from the Tamar license. Only last month the IEC board gave the thumbs up for an agreement with Tamar wherein the corporation will acquire 42 BCM of gas from Tamar over a 15-year period with an option for upping the supply to 99 BCM.


According to reports by the partners, the agreement, estimated at $14-23 billion, will have an effect on electricity tariffs due to the fact that the IEC supplies 95% of Israel's power.


The IEC issued the following statement: "The IEC has acted in accordance with the law and therefore seeks approval from the appropriate bodies. The IEC does not disclose information pertaining to commercial agreements until they are finalized".


Modiin, ATP and Isramco declined to comment.


Original article published by Calcalist in Hebrew



פרסום ראשון: 05.15.12, 07:03
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