Delek Group Updates Tamar Gas Field Reserves To 9.14 TCF

Delek Group Updates Tamar Gas Field Reserves To 9.14 TCF

Israel’s Delek Group on 25 July released an update for reserves in the offshore Tamar gas field, putting proved and probable reserves (P2) at 9.14 tcf (258 bcm), up from a previous estimate of 8.7 tcf. Delek Group said the report was prepared by Netherland and Sewell Associates Inc (NSAI) for the partners in the prospect, which include Delek Group subsidiaries Delek Drilling Limited and Avner Oil Exploration Limited, along with Noble Energy of the US, Isramco and Alon Natural Gas Exploration.

According to the statement released by Delek Group, NSAI estimated proved reserves (P1) at 6.663 tcf and probable reserves at 2.481 tcf putting total P2 at 9.144 tcf. NSAI then put possible reserves at 2.040 tcf, bringing P3 reserves to 11.184 tcf.

The boost in reservoir reserves is attributed to a new gas discovery made by Noble Energy during the drilling of the Tamar-3 well at a depth of 5,160 ms. Noble Energy is now assessing the size and commercial potential of the Layer D formation, which lies beneath three other layers of gas in the Tamar field. The Tamar partners are working to bring the field on-stream in 2013 in order to address Israel’s need to meet demand, which is now around 5 bcm/year. The partners are in discussion with the Israel Electric Corporation (IEC) over gas sales of 5.5 bcm/y, but have yet to reach agreement. The Public Utilities Authority (PUA) recently informed the IEC that it could not agree to pay more for natural gas supplied by the Tamar partners than was agreed in a December 2009 memorandum of understanding (MOU). The PUA said the utility would not be allowed to pay more for the gas and then pass the cost on to consumers. The halt in supply of gas from Egypt has put Israel’s energy sector under considerable strain, reflected in the fact that the PUA is already looking to increase the price of electricity by as much as 19%.

Noble Energy and Delek, partners in the Yam Thetis license where the Mari-B field is located, have increased production there and will drill and develop the smaller nearby Noa North field as a stopgap measure. The Mari-B field, Israel’s only source of domestic supply, is likely to expire in 2012 and the Noa North field, with a reserve of around 1.2 bcm that had previously been considered non-commercial, is to be brought on-stream at a cost of $70mn in an effort to fill the gap until Tamar comes into operation (MEES, 4 July).

Meanwhile, Israeli business magazine Globes on 24 July reported that the Tamar partners are negotiating with the Palestinian Authority regarding the sale of 1 bcm/y of gas that would be used to supply three power stations slated for construction in the West Bank in the towns of Jenin, Ramallah and Jericho. Globes said the partners had had talks with the Palestinian Authority in several neutral locations in 'Amman, Cyprus and Greece. It said the representatives from Delek and Noble Energy had met with Palestinian Authority officials and executives of the private companies involved in the construction of the power stations.

“Supplying gas to the Palestinian Authority would enable Israel to end its commitment to supply electricity to Palestinian customers in the West Bank, which will greatly increase IEC’s reserves. The Palestinian Authority is IEC’s largest customer, consuming 7% of its output,” Globes said.

Copyright MEES 2011.