Israel’s NewMed Energy reports steady profits as rockets fly but gas still flows to Israel, Jordan and Egypt
NewMed Energy, the Israeli company with stakes in the East Mediterranean gas fields of Tamar and Leviathan offshore Israel and with LNG export ambitions, has published its annual results showing pipeline gas continued to flow to the Israeli domestic market and to Egypt and Jordan even after the outbreak of war in Gaza in October 2023.
Israeli NewMed company gives update of war impacts on East Mediterranean gas and state of BP-led stake bid
NewMed Energy, the Israeli company with stakes in the East Mediterranean gas fields of Tamar and Leviathan offshore Israel and the Aphrodite field offshore Cyprus and with LNG export ambitions, has reported earnings and the impact of the war in Gaza as well as the state of the moves by UK major BP and Abu Dhabi National Oil Company for a stake in NewMed.
East Med FLNG plan
May 11 (LNGJ) - NewMed Energy, the Israeli natural gas company and LNG project developer in the East Mediterranean and currently considering a 50 percent stake sale to UK major BP and Abu Dhabi National Oil Company, said BP and ADNOC were now carrying out a due diligence review of NewMed and its assets.
With respect to the expansion plan for the Leviathan gas field offshore Israel, NewMed said there were continuing pre-engineering work and discussions taking place. “There are also various technical, commercial and economic processes for promotion of the Leviathan expansion and the FLNG project, which will supply LNG from Leviathan to the international markets,” NewMed explained.
Israel’s NewMed Energy with gas assets and LNG plans says merger prospects with UK firm decreasing
NewMed Energy, a stakeholder in the largest Israeli offshore natural gas field and a likely future LNG feed-gas supplier, said it was looking more unlikely that it would proceed with the process of being listed on the London Stock Exchange through a reverse takeover of UK company Capricorn Energy.
The expected completion date of the NewMed merger with London-listed Capricorn was the first quarter of 2023.
However, Capricorn has been caught up in a dispute with a major shareholder and has put back a meeting of all shareholders to approve the deal with NewMed.
Capricorn had previously cancelled its proposed merger with UK rival Tullow Oil in favour of the combination with Israel’s NewMed, which was first announced on September 29, 2022.
There had been plans for a $1.4 billion merger between Tullow and Capricorn, which is based in Edinburgh and was formerly known as Cairn Energy.
Among its assets, NewMed holds the rights to 45 percent of the Leviathan Israeli offshore gas field with the other major shareholder in the field being Chevron Corp.
Cyprus gas field
NewMed also has the Aphrodite gas field in Cyprus's offshore economic zone waters, making it one of the biggest players in the East Mediterranean.
In the latest merger developments, Capricorn released a statement to the London Stock Exchange whereby it had decided to adjourn Capricorn's shareholder meeting called for the purpose of approving the NewMed transaction, to February 22 instead of February 1.
An alternative shareholder meeting was called at the request of one significant Capricorn shareholder, Palliser Capital (UK) Ltd., for the replacement of the serving directors of Capricorn with new directors that were proposed by Palliser and a meeting for this purpose was then scheduled to take place on February 1 instead of a meeting to approve the NewMed deal.
Members of the board of Capricorn, including the Chairman of the board and the Chief Executive, resigned immediately from the board and it was also the intention of two other directors, including the Chief Finance Officer, to resign from the board before the February 1 meeting called at the request of Palliser.
NewMed said that in view of these developments and the resignation of most of the Capricorn board members, the probability for the closing of the UK transaction had “significantly decreased”.
The Israeli company said it was continuing to examine strategic alternatives with the aim of “maximizing value” for its own shareholders.
NewMed is currently in the midst of plans to promote the expansion of the Leviathan gas field offshore Israel and the development of the Aphrodite reservoir alongside the launch of exploration and production of natural gas in other Middle East countries.
The Leviathan gas field in addition to supplying the Israeli domestic market also supplies Egypt and Jordan with gas and has existing plans to possibly supply feed gas for liquefaction at the two Egyptian LNG plants, Idku and Damietta, located east of Alexandria.
Cyprus gas find
Dec 21 (LNGJ) - Italian energy company Eni has made a new natural gas discovery offshore Cyprus in the growing gas hub of the East Mediterranean. The find was in the Zeus-1 well drilled in Block 6 and lcoated 162 kilometres (101 miles) off the Cypriot coastline in water depths of 2,300 metres. The block is held on a 50-50 basis between Eni and France’s TotalEnergies.
“Zeus-1 is the third consecutive discovery in Block 6. It follows Cronos-1 and Calypso-1 and confirms the promising outlook for the area,” said Eni. The gas in place associated to this reservoir is preliminarily estimated at between 2 trillion cubic feet and 3 Tcf.
Israel joins Greece and Cyprus to develop East Med natural gas pipeline to EU markets
Greece, Cyprus and Israel have signed an agreement to build a 1,900-kilometre subsea pipeline to transport natural gas from the East Mediterranean to West European markets in competition to LNG.
