24 Mart 2014 Pazartesi

10 bids for Leviathan export tender to Turkey


Globes     Amiram Barkat

Bidders include Zorlu Group and a joint bid by Turcas Petrol AS and German electricity utility RWE.

More than ten bids were submitted in the tender by the partners in Leviathan for the export of natural gas to Turkey. The bids for the purchase of natural gas ranged from 7 billion cubic meters (BCM) a year to 10 BCM, amounts that could generate $22-31 billion revenue, assuming a 15-year gas supply contract at $6 per million British Thermal Units (mmBTU), the price of natural gas in Israel's domestic market.

Sources inform ''Globes'' that the bidders in the tender include Zorlu Group, which has stakes in independent power producers in Israel, and a joint bid by Turcas Petrol AS and German electricity utility RWE AG.
Noble Energy Inc. owns 39.66% of Leviathan, Delek Group Ltd. units Avner Oil and Gas LP and Delek Drilling LP each own 22.67% and Ratio Oil Exploration (1992) LP owns 15%.

In January, "Globes" reported that the partners in Leviathan had invited several dozen Turkish companies to bid in a gas supply contract from the gas field. The deal would include laying a pipeline to Turkey from Leviathan's proposed floating production, storage and offloading (FPSO) ship, which deliver gas to Israeli and regional customers. The price in the bids is the purchase price of the gas from the FPSO. In addition to this price, the bids will be evaluated on the basis of their commercial terms, including the take or pay condition and the capacity of the gas purchased.

Some of the bidders are willing to build the pipeline themselves, while others prefer working in partnership with the Leviathan partners. After reviewing the bids in the coming weeks, the partners will hold separate negotiations with the finalists for signing a gas purchase contract.



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