Delek Drilling and Noble Energy—the operators of Israel’s largest natural gas fields Tamar and Leviathan—and the Egyptian company East Gas Co, have bought control of a pipeline to Egypt, paving the way for the Israeli gas exports into Egypt.
The three companies signed a deal to buy a 39% shares in pipeline owner Eastern Mediterranean Gas Co., according to a statement released by Delek Drilling on Thursday. The buyers will pay $518m, with Delek and Noble contributing $185m each and the remainder being paid by East Gas.
In February, two 10-years agreements, worth $15bn, to export Israeli natural gas to Egypt were signed. The agreements between Delek Drilling and Noble Energy—the operators of Israel’s largest natural gas fields Tamar and Leviathan—and the Egyptian company Dolphinus Holdings, will supply Egypt with 7bn cubic metres of gas annually.
The agreement gives the three companies exclusive rights to lease and operate the subsea gas pipeline owned by EMG, connecting southern Israel to Egypt’s Sinai peninsula.
According to the press release, shareholders of EMG will be;
EMED 39%, PTT Energy Resources Company 25%, Mediterranean Gas Pipeline 17 %, The Egyptian Partner%7, Egyptian General Petroleum Corporation (EGPC) 10%.
EMED is a special-purpose company established for the transaction and registered in the Netherlands, whose shares are held between Noble, Delek, and East Gas.
