Barclays: Myra, Sarah will break Tamar, Leviahtan monopoly

“This new information is likely to drive more interest to the area from both the energy world as well as the financial world,” report says.

June 30, 2011 23:37
1 minute read.
Tamar offshore gas field.

tamar offshore gas field_311. (photo credit: Courtesy)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

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 Thursday.

Be the first to know - Join our Facebook page.

Deutsche Bank said in a report, “The chances of success are extraordinarily high, significantly higher than Tamar... and higher than Leviathan.”

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.

“The 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 perception.”

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 proven unreliable.

“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 Tamar.”

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 Exploration).

Neither bank covers Myra’s and Sarah’s Israeli licensees, Israel Land Development Company Energy and Modiin Energy.

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection