• 11 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 13 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 15 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 16 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 18 hours Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 19 hours Aramco Says No Plans To Shelve IPO
  • 3 days Trump Passes Iran Nuclear Deal Back to Congress
  • 3 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 4 days Renewable Energy Startup Powering Native American Protest Camp
  • 4 days Husky Energy Set To Restart Pipeline
  • 4 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 6 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 6 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 7 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 7 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 7 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 7 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 7 days Niger Delta State Looks To Break Free From Oil
  • 7 days Brazilian Conglomerate To Expand Into Renewables
  • 7 days Kurdish Independence Could Spark Civil War
  • 7 days Chevron, Total Waiting In The Wings As Shell Mulls Majnoon Exit
  • 8 days The Capital Of Coal Is Looking For Other Options
Alt Text

India’s Urban Explosion Boosts Oil Demand

As India sees incredible growth…

Alt Text

Record U.S. Oil Exports Weigh On Oil Prices

West Texas Intermediate briefly slumped…

Alt Text

Is OPEC Considering Deeper Output Cuts?

You could argue OPEC and…

Israel’s Supreme Court Dashes Netanyahu’s Energy Plans

Israel’s Supreme Court Dashes Netanyahu’s Energy Plans

Critical and unexpected development with one of the world’s largest natural projects the last couple days. With a major court decision putting the future of the development in doubt — in a place that desperately needs supply.

That’s Israel. Where the country’s Supreme Court Sunday dealt a major blow to the advancement of the Leviathan offshore mega-field.

Israel’s government had been working on a development plan for the Leviathan field. Which was discovered six years ago, and eventually found to contain a massive endowment of 20 trillion cubic feet in reserves. Related: Was Russia’s Syrian Campaign Aimed At Turkish Energy Security?

That’s an energy source badly needed in Israel — as well as in neighbouring nations like Jordan, Egypt and Turkey. With Leviathan hailed as a gamechanger for the energy security of this region.

But the development is a serious task. And to get it done, the Israeli government had offered numerous concessions to project owner Noble Energy. Including a 10-year “stability clause” that guaranteed certain aspects of project economics — such as export quotas and taxes.

But Israel’s Supreme Court ruled that such guarantees are beyond the mandate of the sitting government. With the Court saying that today’s officials don’t have the legal right to bind future governments into set fiscal terms. Related: Low Oil Prices Forcing Saudi Arabia To Modernize Economy

That’s a major blow to the project. With financial stability being a critical part of developing any mega-project like this. Simply put, no developer wants to splash out billions on a field — only to find its economic projections blown out the window when terms change for key variables like export levels or government take.

Israel’s Prime Minister Benjamin Netanyahu said the decision causes “severe damage” for the Israeli economy. And he could be right — with Noble Energy saying yesterday that the decision raises the risk of delays with development. Which had been planned to be completed by 2019. Related: ExxonMobil To Strike Biggest Deal Since Oil Bust Started

The courts gave Noble and the government a year to revise the agreement. But there’s little clarity on what form this might take — with Noble officials saying again this week that investment stability is a “minimum condition for project development.”

Watch for announcements on possible next strategies from both the government and the company in order to move this key project forward.

Here’s to risky business

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News