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Pangea, Tamar Partners Share Israeli FLNG Costs

A Cost Sharing Agreement (CSA) has been executed between Levant LNG Marketing, a subsidiary of Pangea LNG B.V., and Tamar Partners. This major milestone demonstrates the continuing progress toward the export of LNG from the Tamar and Dalit fields in the Eastern Mediterranean, 60 miles offshore from Israel.

The Tamar Partnership will participate in the cost of developing the project front end engineering and design (FEED) for a permanently moored offshore floating natural gas liquefaction vessel with onboard storage. Pangea LNG and Tamar Partners anticipate launching FEED by end of 2012 and making a final investment decision by the second half of 2013.

The floating liquefaction (FLNG) midstream solution is being developed by Pangea LNG, an LNG development and investment company owned by Daewoo Shipbuilding and Marine Engineering (DSME), Next Decade International and D&H Solutions AS. Pangea LNG is a floating LNG liquefaction and storage project developer now working on projects around the globe that will connect gas suppliers to the world’s most important LNG demand markets.

The Tamar Partnership includes Noble Energy Mediterranean Ltd, Isramco Negev 2 Limited Partnership, Delek Drilling Limited Partnership, Avner Oil Exploration Limited Partnership, and DorGas Exploration Limited Partnership. These companies are the owners and producers involved in the discovery of significant natural gas resources in the Tamar and Dalit fields where development drilling is underway.

Gerhard Ludvigsen, a founding member of the Pangea LNG board of directors, said “the Tamar project embraces the entire value chain and balances the risk positions for the owners of hydrocarbons, the off takers and the midstream technology provider.

“The Pangea business model offers the opportunity for all stakeholders to take part in the value enhancement from gas production through the FLNG/midstream solution to the final off take of LNG. Pangea LNG opens the potential for national oil companies and owners of small to medium size gas reserves to monetize stranded gas and take part in the value creation in the entire value chain.”

Pangea LNG continues to work on off-take agreements for LNG production from the Tamar project. Pangea LNG has already executed several letters of intent with potential off takers and is in the final stage of negotiations for the long term sales and purchase agreement.

The Tamar framework agreement represents an important step in the development of what will be the first floating LNG liquefaction project in the Mediterranean basin. The Tamar and Dalit fields are located in the Levantine basin in Israeli waters.

“The Eastern Mediterranean gas fields provide a particularly good location for deploying an offshore floating LNG solution,” said Kathleen Eisbrenner, Pangea LNG’s chief executive officer. “The reserves are large, the climate is moderate and the location offers efficient access to significant LNG markets.”

O.K. Shin, Team leader of DSME Corporate Strategy Team, noted that the vessel-mounted liquefaction system being designed will take advantage of the efficiencies of the DSME shipyard construction environment and the best practices the company has developed during many years of LNG and process vessel construction.

Pangea LNG brings together a team that generated the innovations that are at the foundation of the floating LNG sector. DSME, the majority owner of Pangea, is one of the world’s leading shipbuilders and a contractor for major energy companies providing them with offshore platforms, drilling rigs and floating production units. The company builds special purpose vessels and specializes in LNG carriers. It constructed nine of the 11 floating LNG regasification vessels now in service.

Pangea, Tamar Partners Share Israeli FLNG Costs| Offshore Energy Today.

Iran says it treats Israeli military threats as American

DUBAI | Wed Sep 5, 2012 7:01am EDT

(Reuters) – Iran makes no distinction between U.S. and Israeli interests and will retaliate against both countries if attacked, an Iranian military commander said on Wednesday.

The comments came after the White House denied an Israeli news report that it was negotiating with Tehran to keep out of a future Israel-Iran war and as U.S. President Barack Obama fends off accusations from his election rival that he is too soft on Tehran.

“The Zionist regime separated from America has no meaning, and we must not recognize Israel as separate from America,” Ali Fadavi, naval commander in Iran’s Islamic Revolutionary Guard Corps, was quoted as saying by the Fars news agency.

“On this basis, today only the Americans have taken a threatening stance towards the Islamic Republic,” Fadavi said. “If the Americans commit the smallest folly they will not leave the region safely.”

Iran – which has missiles that could reach Israel and U.S. targets in the region – has conducted military exercises and unveiled upgraded weapons in recent months, aiming to show it can defend itself against any strike against its nuclear sites.

Israel – thought to be the only country in the Middle East with nuclear weapons – says the prospect of a nuclear armed Iran would pose a threat to its existence. Tehran denies it is developing weapons and says its nuclear program is peaceful.

With the approach of U.S. elections in November, Israeli Prime Minister Benjamin Netanyahu has called for a tougher stance against Iran – implicitly knocking Obama’s emphasis on diplomatic and sanctions pressure to halt Iranian nuclear work.

While Israel would expect U.S. backing if it decided to strike Iran, the top U.S. general has suggested Washington would not be drawn into a conflict.

“I don’t want to be complicit if they choose to do it,” Britain’s Guardian newspaper quoted Chairman of the Joint Chiefs of Staff Martin Dempsey as saying.

Netanyahu abruptly ended a meeting of Israel’s security cabinet on Wednesday, saying someone in the forum had leaked details of its discussions on Iran.

Any decision to go to war against Iran would, by Israeli law, require the approval of the security cabinet. One government official, who spoke on condition of anonymity, said no such decisions had been on the table at Tuesday’s meeting.

(Reporting By Yeganeh Torbati; Editing by Robin Pomeroy)

Reuters

Apache Considers Entering Israeli Oil and Gas Sector

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Sources inform ”Globes” that Apache Corporation is considering entering Israel’s oil and gas exploration sector. Company executives recently met government officials to discuss possible operations. Apache is studying the Israeli market, including the new tax regime.

Energy exploration industry sources who have been in contact with Apache believe that it will make a final decision in early 2012, when the final results of the Leviathan 1 exploratory well to the structure’s deep oil-bearing strata will be announced. An oil discovery could strongly influence Apache’s decision. Apache might also be interested in the gas export project for Leviathan, which could cost $10 billion to create – a project suitable for a company of Apache’s size.

Apache has a market cap of $45 billion, compared with $17 billion for Tamar and Leviathan partner Noble Energy Inc. .

Apache’s possible entry to Israel’s energy exploration market is of great interest to the government. The company, which has been included in the S&P 500 Index since 1997, is in a different league from other US energy companies that are already operating in Israel, such as Noble Energy. Companies of Apache’s size have avoided the Israeli energy market until now, partly because of its small size and newness, and partly to avoid damaging interests in the Arab world. Apache has been operating in Egypt since 1996, its only Arab operations.

The sources said that Apache’s representatives discussed natural gas exports from Tamar and Leviathan, as well as the floating liquefied natural gas (FLNG) terminal and its suitability for the Israeli market. Considered the latest word in the industry, Israeli officials believe that an FLNG may be better than an onshore LNG terminal, because of Israel’s shortage of coastal land, opposition to terminals by local residents, and security threats. The Mediterranean Sea, which is considered relatively calm, is especially suited for an FLNG.

Original Article

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