Chevron allows Tamar partners to sell gas separately
The dispute between the partners holding rights to the Tamar and Leviathan offshore gas fields, which has been continuing over the past year, has finally been resolved, resulting in estimated savings of NIS 100 million for the Israel Electric Corporation (IEC).
S. Horowitz & Co. represented the Israel Electric Corporation (IEC) in its struggle to lower its natural gas costs and to open up the natural gas market to competition. Within this scope, S. Horowitz submitted a complaint to the Israeli Competition Authority (ICA) against Chevron, claiming that it had abused its monopolistic position, and accompanied IEC in its discussions with the ICA. The firm also accompanied IEC in the intensive negotiations with Tamar partners and Leviathan partners.
Erdinast, Ben Nathan, Toledano & Co. acted for Isramco, Tamar Petroleum, Dor Gas Exploration and Everest Infrastructures, which hold together 53% of the Tamar gas reservoir, in the discussions with the ICA, and also in negotiations that led to agreements between all of the holders in Tamar. From now on the Tamar Partners, Isramco, Tamar Petroleum, Dor Gas and Everest Infrastructures, who hold 53% of the rights to the Tamar field will be able to sell gas more cheaply to the IEC.
Agmon & Co. Rosenberg Hacohen & Co. advised Chevron (formerly Noble Energy) in the negotiations of the settlement agreements between the parties and Israel Electric Corporation. This ends a protracted standoff in which Noble Energy, (which was subsequently acquired by Chevron last year), the operating partner in both the Tamar and Leviathan fields, prevented the other Tamar partners from competing with the Leviathan field. Chevron, which last year bought Noble Energy, has a 25% stake in the rights of Tamar and a 40% stake in the rights of Leviathan and is the operator of both fields.
The S. Horowitz team included Shuki Horesh, Senior Partner of the firm’s Litigation practice group, Ronen Brumer, partner in the same group, Gitit Levin Grinberg, partner in the firm’s Antitrust practice group, Ira Hardy, associate in the Litigation practice group, Matan Sasson, associate in the firm’s Antitrust practice group, and intern Yazid Ershied.
The EBN team comprised Giora Erdinast, Tomer Weissman and Naama Ehrlich, with Adv. Jonathan Spielberg, from the firm’s Litigation department, by partner Michal Rothschild, from the firm’s Antitrust and Competition department, and intern Aviv Arnon.
The Agmon team comprised Dan Hacohen and Eddie Ashkenazi, partners in the firm’s Energy practice, while Zvi Agmon and Mattan Meridor, partners in the Competition practice advised on the proceedings and discussions with the Israeli Competition Authority in relation to the settlement.
