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Noble and Delek Look to Change Terms with Egypt

Sunday, July 28, 2019

Noble Energy Inc. and Delek Drilling, parties in the $15 billion deal to export Israeli natural gas to Egypt, are seeking to change the agreement to enable supplies to increase gradually and thereby reduce the risk of disruptions.

The two companies are working on modifying their contract with Egypt’s Dolphinus Holdings Ltd. so that they can reach peak supply in two years, Delek Chief Executive Officer Yossi Abu said on a call with investors.

The current contract, signed in 2018, calls for exports of 7 billion cubic meters of gas annually by 2020. Half of that is on a so-called interruptible basis, meaning that supply can vary during peak hours or adverse conditions. Firms developing the Leviathan gas field are seeking to make the entire supply non-interruptible, while taking longer to reach the target, Abu said.