- Title: ISRAEL-NATGAS Israel cabinet approves deal to develop Leviathan natgas field
- Date: 16th August 2015
- Summary: JERUSALEM (AUGUST 16, 2015) (REUTERS) ISRAELI PRIME MINISTER BENJAMIN NETANYAHU ARRIVING AT WEEKLY CABINET MEETING CABINET MEETING ISRAELI ENERGY MINISTER YUVAL STEINITZ (SOUNDBITE) (Hebrew) ISRAELI PRIME MINISTER BENJAMIN NETANYAHU SAYING: "At long last, this decision is an important milestone. We are overcoming the obstacles step by step. This process will not be stopped
- Embargoed: 31st August 2015 13:00
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- Topics: General
- Reuters ID: LVADPQX4QE9FVVBY35YHJJVPGBV2
- Aspect Ratio: 16:9
- Story Text: Israel's cabinet on Sunday (August 16) approved a deal with a U.S.-Israel consortium that would move forward development of the huge Leviathan natural gas field off Israel's Mediterranean coast.
The controversial deal reached late last week, which Prime Minister Benjamin Netanyahu believes will bring Israel billions of shekels in the coming years, still needs parliamentary approval.
After weeks of talks over the government's initial proposal in June, the deal will allow Texas-based Noble Energy and Israel's Delek Group to keep ownership of the largest offshore field, Leviathan. They are required to sell off other assets, including stakes in another large deposit called Tamar.
Netanyahu had been adamant in seeking a deal that would allow Leviathan - one of the world's largest offshore discoveries of the past decade - to be developed. He had faced a coalition crisis over details of the plan on grounds that the government gave into most of the companies' demands and leave Noble and Delek with too much power since they would control most of Israel's gas reserves.
As he convened his weekly cabinet meeting on Sunday, he said the decision was of historic proportions.
"At long last, this decision is an important milestone. We are overcoming the obstacles step by step. This process will not be stopped. The gas will be taken out from the bottom of the sea to the citizens of Israel, to the industry and economy of Israel, to the benefit of the citizens of Israel," Netanyahu said.
Leviathan, with estimated reserves of 22 trillion cubic feet (tcf) or 622 billion cubic metres, is slated to begin production in 2018 or 2019 and expected to supply billions of dollars of gas to Egypt and Jordan in addition to supplying Israel.
One change to the initial plan is that the price of gas in the new agreements will be lower, while the developers will also commit to invest $1.5 billion in developing Leviathan in the next two years. - Copyright Holder: REUTERS
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