Tamar partners, Sorek IPP to sign $750M gas sales deal

Partners in the Tamar offshore field in Israel are expected to enter into a $750 million gas sales agreement with Sorek IPP.

Under the agreement, Sorek IPP will receive up to a total of 3.3 billion cubic meters of natural gas from the field in the Mediterranean sea.  The supply of natural gas is expected to start at the beginning of the first quarter of 2016 for the period of over 15 years or up until the contracted quantity has been utilized.

According to Reuters, Sorek IPP, owned by Delek Group, needs natural gas for a power plant currently under construction in Israel.

Sorek IPP will also have an option to extend the gas sales agreement for another two years.

Noble Energy operates Tamar with a 36 percent working interest. Other interest owners are Isramco Negev 2 with 28.75 percent, Delek Drilling with 15.625 percent, Avner Oil Exploration with 15.625 percent and Dor Gas Exploration with the remaining four percent.

Last month, Noble Energy entered into an agreement to supply  natural gas from the Tamar field  to Arab Potash and Jordan Bromine for use in their facilities near the Dead Sea.