Business in Brief: January 7

Tshuva adds to Tamar, Leviathan stakes; Noble Energy eyes liquefied natural gas; Elbit Systems wins Brazilian Army order.

yitzhak tshuva311 (photo credit: Courtesy)
yitzhak tshuva311
(photo credit: Courtesy)
Tshuva adds to Tamar, Leviathan stakes • By YAEL GRUNTMAN
Delek Group Ltd. controlling shareholder Yitzhak Tshuva apparently believes that the final Sheshinski Committee recommendations are not too bad. Over the past two days, Delek bought shares in subsidiary Delek Energy Systems Ltd. and its subsidiaries Avner Oil and Gas LP and Delek Drilling LP for tens of millions of shekels. The purchases came two days after the Sheshinski Committee released its final report, which the investors in Tamar and Leviathan claim will reduce the value of their investment and can destroy Israel’s oil and gas exploration industry.
On Wednesday, Delek Group bought 1,853 shares in Delek Energy at NIS 1,365.40 per share for NIS 2.53 million, after buying 7,441 Delek Energy shares at NIS 1,343 per share on Tuesday for NIS 10m. Delek Group owns 79.07 percent of Delek Energy following the purchases.
Delek Group bought 82,122 partnership units in Delek Drilling at NIS 14.07 per unit for NIS 1.15m., increasing its stake in the partnership to 7.85%. The purchase followed Tuesday’s purchase of 267,000 partnership units at NIS 13.59 per unit for NIS 3.63m.
Delek Group bought 11,923 partnership units in Avner at NIS 2.51 per unit, after buying 3.58 million partnership units at NIS 2.42 per unit on Tuesday, for a combined total of NIS 8.7m. It now owns 13.82% of Avner.
Avner and Delek Drilling each own 15.625% of Tamar and 22.67% of Leviathan.
Noble Energy eyes liquefied natural gas • By KOBY YESHAYAHOU
Noble Energy Inc. is apparently leaning toward liquefied natural gas (LNG) as the best option for exporting the gas found at the Leviathan offshore site. Noble Energy CEO Charles Davidson told energy news website Fuelfix the most likely scenario for getting natural gas from the Leviathan field to European and Asian markets is to build LNG capacity in Israel. Building an undersea pipeline would involve quite a few risks, he said, such as possible sabotage along the long pipelines to consumers in Europe. Building an LNG facility minimizes some of the risks, including political ones, of the project, he added.
While the costs of exploring and producing gas from Leviathan were “very much within our scope and scale,” Davidson said, Noble Energy would likely seek partners to help shoulder a multibillion-dollar LNG project.
Elbit Systems wins Brazilian Army order • Globes correspondent
Elbit Systems Ltd.’s Brazilian subsidiary, Aeroeletronica Ltda. has won a $260 million Brazilian Army follow-on order for the supply of UT30 BR 30-mm. unmanned turrets, as part of the army’s Guarani Project. Elbit Systems won the contract in an open international tender in 2009. Elbit Systems will install the unmanned turrets on several hundred Brazilian Army Iveco 6x6 armored personnel carriers.
“The award is a major milestone for AEL in our continuing process to enhance local Brazilian capabilities and technologies,” Elbit Systems president and CEO Joseph Ackerman said. “Winning such a prestigious project attests to our leadership in the field of innovative land solutions, and we hope other customers will follow, both in Latin America and throughout the world.”
Last week, Elbit System acquired two Brazilian defense electronic companies, companies, Ares Aeroespecial e Defesa SA and Periscopio Equipamentos Optronicos SA.