Exploration & Production

Israeli gas reforms set to disappoint IOCs

Israel's interim proposal to revamp its domestic gas supply obligation is likely to do little to attract international players Israel's interim proposal to revamp its domestic gas supply obligation is likely to do little to attract international players.
By James Gavin 14 August 2018 0 32130
Artist's impression of an FPSO in the Karish and Tanin fields Artist’s impression of the FPSO for use in the Karish and Tanin fields. (Energean)

Israel is planning to reform its domestic supply obligations for gas producers in a bid to spur much-needed exploration investment. However, interim recommendations put forward by a government committee charged with designing the new regime suggest companies will still have to supply a large portion of their output to the local market. 

Producers in Israel are currently required to sell at least 50% of their output to Israeli buyers. This restriction on exports is often cited by IOCs as a disincentive to invest in the country. 

The...