BG International Ltd. acquired a 50% interest in five exploration tracts in the Mediterranean Sea off Israel through a $10 million farmout deal with current operator Isramco Inc.
The tracts cover a total 2,000 sq km and comprise: Med Yavne, Block 239; Med Tel Aviv, Block 240; Med Hedera, Block 241; Med Ashdod, Block 242; and Med Hasharon, Block 243.
BG is expected to take over the operatorship of Med Yavne once the Or-1 wildcat, currently drilling ahead, is completed. The well was spudded in early October and will be followed immediately by Or-South.
Then the Med Yavne license interests will be: operator BG, 50%; Isramco, 42%; and Delek Drilling Ltd., 8%. For the other four licenses, the ownership will be: operator Isramco, 46%; BG, 50%; and Delek, 4%.
The farmout follows the award of three deepwater exploration tracts off Israel to BG this summer (OGJ, July 5, 1999, p. 29). BG retained a 70% interest in these blocks but farmed out 30% to the Middle East Energy consortium of Israeli companies.
BG and MEE have prequalified to develop Israel Gas Co. to transmit and distribute gas throughout Israel. Tenders for this project are due to be submitted later this year, with the contract award anticipated in early 2000.
