Delek Group announces Tamar signed an agreement with Paz Ashdod Refinery

Monday, Dec 03, 2012

Delek Group gas subsidiaries announced that an agreement for the supply of condensate generated (a hydrocarbon liquid that is generated during the production of natural gas) if any, was signed by the Tamar Partners with Paz Ashdod Refinery Ltd. under various terms and conditions. Under the agreement, the condensate price will be linked to Brent, and the supply of condensate is expected once the Tamar reservoir begins to produce condensate, if any, for a period of five years. Provisions regarding daily limits (minimum and maximum), monthly and annual quantities of condensate, fines in case of violation of the provisions of the agreement, etc. were determined in the agreement. Prior to the end of the agreement, the parties will renegotiate the price for an additional period of five years. In absence of a new agreed price, the agreement will not be extended. The estimated cumulative revenues are US $ 30-50 million per year. Note that there is no certainty with regard to the scope or quantities of the condensate generated and to be obtained, if any. Actual revenues are driven by various factors, including condensate quantities produced and sold to Paz Ashdod, as well as the price of Brent.

Source: Delek Group