Israeli JV to return offshore licenses to government
An Israeli partnership has decided to return the Daniel East and Daniel West offshore oil and gas exploration licenses to the Israeli Government due to a lack of investors, among other reasons.
In Sunday’s statement, Modiin Energy, one of the companies in the joint venture, said the license operator recommended that the licensees return all rights in the Daniel licenses, located in the Mediterranean, to the state.
According to the company, the proposition was considered during a joint operating committee meeting of the JV.
The operator of the two licenses, Isramco Negev, made its recommendation based on its assessment regarding the level of geological risk, prospects identified in the area of the licenses, and the difficulties anticipated in the commercialization of the gas if and when it is discovered in the field.
Also, one of the reasons for returning the licenses to the Government was a “lack of responsiveness” of new investors to join the licensees as well as the fact that the licenses cannot be extended.
Modiin said that the licenses and the work plan would expire in April 2018, seven years after they were originally awarded on April 13, 2011.
The partners in the joint venture are Isramco, as the operator, Modiin Energy, Israel Oil Corporation, ATP Oil & Gas Corporation, and PSH which hold 65, 15, 10, 5 and 5 percent interest, respectively.
Offshore Energy Today Staff