tamar offshore gas field_311.
(photo credit: Courtesy)
Barclays Capital and Deutsche Bank are both upbeat on the gas and oil discovery
announced by the Myra and Sarah licensees.
“This new information is
likely to drive more interest to the area from both the energy world as well as
the financial world,” Barclays Capital said in a report
Deutsche Bank said in a report, “The chances of success are
extraordinarily high, significantly higher than Tamar... and higher than
Barclays added: “Since January 2009, over 30 trillion cubic
feet of natural gas has been targeted for drilling, post 3-D seismic imaging. So
far, Noble Energy Inc. and GeoGlobal Resources Inc. are the only active
operators in the region, and there are only two active rigs.
potential resources are a positive for the Israeli government, which has become
increasingly concerned that the Tamar consortium would be an effective monopoly
in supplying gas to Israel, and these licensees could help break that
Deutsche Bank said the Myra and Sarah discovery “would
affect Tamar and Leviathan in contrasting ways: The additional gas discovery
could make a LNG (liquefied natural gas) project more cost-effective for
Leviathan, but it could put pricing pressure on the Tamar project, which until
now only had expected competition from Egyptian gas imports, which have recently
“Tamar gas will be directed toward the domestic
Israeli market, and Thursday’s announcement could delay or reduce the sizes of
potential contracts for Tamar, as customers may prefer to await further
developments at Myra and Sara before concluding large contracts with
Deutsche Bank said the Myra and Sarah owners intend to cooperate
on exports with the Leviathan partnership (Noble Energy, Delek Group and Ratio
Oil Exploration) and to compete in the domestic market with both Leviathan and
Tamar (owned by Noble Energy, Delek Group, Isramco and Alon Natural Gas
Neither bank covers Myra’s and Sarah’s Israeli licensees,
Israel Land Development Company Energy and Modiin Energy.