Business in Brief: March 4

Isramco to triple gas estimate at Shimshon; EMG seeks US help to get Egypt gas.

By GLOBES CORRESPONDENTS
March 3, 2011 23:59
2 minute read.
Israel gas rig

Israel gas rig. (photo credit: Delek)

Isramco to triple gas estimate at Shimshon

BY AMIRAM BARKAT

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Energy explorer Isramco Ltd. will soon increase the probability of finding natural gas at the Shimshon license, as well as the potential quantity there. Market estimates are that the official notice will come as early as next week.

On June 30, Isramco reported the results of the analysis of the seismic survey of Shimshon, which showed that in the southern portion of the license there are sands that can hold natural gas, similar to sands in the Nile delta. The potential for the prospect was estimated at 43 billion cubic meters (1.1 trillion cubic feet), with a 15 percent chance of success.

Isramco will raise the probability of success to more than 20%, and the potential quantity will be raised to 3 t.cu.f., people familiar with the matter told Globes Thursday. For comparison, the preliminary chance of success at Tamar was given at 35%, and in the end 8.6 t.cu.f. of natural gas were found.

Isramco declined to comment on the report.

Isramco owns 79% of Shimshon. Its affiliates INOC-Dead Sea LP and Naphtha Explorations Ltd. each own 10%, and Israel Oil Company owns 1%. Isramco owns 28% of Tamar and Dalit.

EMG seeks US help to get Egypt gas

BY AMIRAM BARKAT

Israeli company Merhav MNF Ltd. has confirmed that East Mediterranean Gas Co. Ltd. will not resume supplies of natural gas to Israel on Friday.

This is the third time that the resumption of gas supplies has been delayed, and unlike the previous occasions, EMG has given no date for the renewal of the gas flow.

“The flow of gas will, in all likelihood, not be renewed at the weekend,” Merhav MNF said in a statement Thursday.

“EMG’s shareholders have asked the governments of the US, Thailand and governments in Europe to push the Egyptian government into speeding up the renewal of the flow.”

Merhav MNF president and CEO Yosef Maiman owns 20.6 percent of EMG through Merhav and Ampal- American Israel Corporation.

Other shareholders are Egyptian businessman Hussein Salem (28%), Thai national oil company PTT (25%), US businessmen Sam Zell and David Fisher (12%), the Egyptian government gas company EGAS (10%) and Israeli institutions (4.4%). The flow of gas was halted on February 5 after terrorists blew up a gas pipeline in the northern Sinai.


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