It was announced April 22nd that the group of owners developing one Israel’s large offshore gas fields, Tamar, will be getting just over $900 million in loans from a consortium of 11 companies and banks in the near future. The money is a huge boon for the developing Israeli energy industry. It also indicates the potential for the export element of the business the industry is aiming for. The connections are coming from principle Tamar developer Noble Energy, based in Texas, which owns about a third of the field.
In January, the controlling group signed a deal with a smaller Israeli energy provider to supply gas for nearly 20 years, declaring they wished to increase competition in the Israeli market. That deal is worth $5 billion.
Tamar is a large gas field whose vast area has caused diplomatic and security issues to pop up with Lebanon and Hezbollah. The field is one of several that is also the target of joint development projects with Cyprus. Cyprus’ interests have angered Turkey, creating tension with Ankara as well. Turkey does not recognize the government of (southern) Cyprus, preferring the Turkish Northern Cyprus government as the official representative of the island. Israel has been looking at enlarging its navy in anticipation of security issues to offshore development sites in the future. Lebanon has refused to negotiate with Israel up till this point, instead filing complaints with international bodies and refusing to ratify a joint development agreement with Cyprus.