Calcalist, Apr 22 2013
Ratio Oil Exploration CEO Yigal Landau took part in a panel discussion on development and finance of energy investments at the Energy Convention hosted by the Israeli Energy Institute. Landau was asked about the financing options for large-scale projects like Leviathan. He replied that “there have been projects that were financed privately in no time at all and brought to a successful and timely conclusion. For a government agency, it would have taken not three years but ten, and cost not 3 billion dollars but three times as much.”
Yigal Landau stated that he is persuaded it is possible to finance new projects through the private sector on the basis of export contracts with global gas companies. He said, “once Leviathan is developed, Israel will have enough gas to avoid being dependent on anyone in the Ashdod port.”
When asked about the need to split gas reservoir holdings, Landau replied that if competition was positive, it should be encouraged: “Why don’t other industry leaders come to Israel? In order to bring in the key players we need to create the right conditions. Up till now we’ve got 25 TCF of gas, and there is much more than that.”
To conclude his comments, Landau alluded to Egypt, whose confirmed gas reserves are twice the extent discovered in Israel, but who suffers gas shortages since its main production plant is non-operational. Egypt is now considering gas imports because it lacks the economic conditions for drilling and production. “As for splitting the Tamar or Leviathan fields, you need to bear in mind that development costs billions of dollars – who is going to cover those costs? Before the gas is sold, it needs to be produced,” Landau concluded.
Read Yigal Landau’s comments in full: