Advertisements

Israel Approves Oil Drilling In Syria To Company Part Owned By Rothschild & Murdoch

Comments Off on Israel Approves Oil Drilling In Syria To Company Part Owned By Rothschild & Murdoch

Israel ups the pressure on Syria whose oil and gas in the Levant Basin and Golan Heights are coveted by many companies. According to a U.S. Geological Survey, the Levant Basin contains and estimated 1.7 billion barrels of recoverable oil and 122 trillion cubic feet of gas. Israel has issued Genie Energy a permit to drill for oil within the Golan Heights.

Genie Energy had been issued an exclusive permit on Wednesday by Israel’s Energy and Water Resources Ministry to drill for oil.

This allows for oil exploration in a 153 square mile in the south of Golan Heights.

“Based on its preliminary analysis and interpretation of existing geological data, that the newly issued license area may contain significant quantities of conventional oil and gas in relatively tight formations, the development of which would entail significantly different technical approaches and project timelines than the other projects,” Genie Energy said in a statement.

Israel annexed Golan from Syria in June 1967 after a six-day war, with an estimated 2,500 Syrian fatalities and 591 taken prisoner. Despite being annexed in 1981, this move is not internationally recognised.

Israel-Syria peace talks halted oil permits for the area 20 years ago, with the relinquishment of Golan being one of the key facets. The talks however were never resolved.

But the plot thickens. According to IDT (parent of Genie Energy), both Lord (Jacob) Rothschild and Rupert Murdoch have a stake in the energy company. Interesting how it all plays out.

Genie Energy Corporation (Genie Energy), a division of IDT Corporation (NYSE: IDT, IDT.C), today announced that Lord (Jacob) Rothschild and Rupert Murdoch have each purchased equity stakes in Genie Oil and Gas Inc. Jacob Rothschild will join Rupert Murdoch on Genie Energy’s Strategic Advisory Board and Jacob Rothschild’s interests will partner with Genie Energy to raise capital for the eventual commercialization of its oil shale projects.

Jacob Rothschild and Mr. Murdoch separately purchased equity positions equivalent to a cumulative 5.5% stake in Genie Oil and Gas Inc., which consists of IDT’s interests in American Shale Oil, LLC (AMSO), and Israel Energy Initiatives, Ltd., (IEI), for a total of $11.0 million dollars.

Source: The Telegraph, IDT

Advertisements

Opps, Egypt Cuts Israel Off from 40% Of Its Natural Gas Supply

1 Comment

Its all kicking off now. Egypt out of the blue has just cut Israel off from the natural gas supply. Currently 40% of Israel’s supply comes from Egypt. Apparently it was people power to forced this move after constantly attacking the pipeline.

Egypt’s energy companies have terminated a long-term deal to supply Israel with gas after the cross-border pipeline sustained months of sabotage since a revolt last year, a stakeholder in the deal said on Sunday.

Ampal-American Israel Corporation, a partner in the East Mediterreanean Gas Company (EMG), which operates the pipeline, said the Egyptian companies involved had notified EMG they were “terminating the gas and purchase agreement”. 

The company said in a statement that the Egyptian General Petroleum Corporation and Egyptian Natural Gas Holding Company had notified them of the decision, adding that “EMG considers the termination attempt unlawful and in bad faith, and consequently demanded its withdrawal”

It said EMG, Ampal, and EMG’s other international shareholders were “considering their options and legal remedies as well as approaching the various governments”.

Before the sabotage, Egypt supplied about 40 percent of Israel’s natural gas, which is the country’s main energy source.

Israeli officials have said the country was at risk of facing summer power outages due to energy shortages.

Companies invested in the Israeli-Egyptian venture have taken a hit from numerous explosions of the cross-border pipeline and are seeking compensation from the Egyptian government of billions of dollars.

Ampal and two other companies have sought $8 billion in damages from Egypt for not safeguarding their investment.

As usual ZeroHedge has a very interesting view point.

The only question Israel may want to answer now is whether it wants to get cozy with Russia, whose nat gas it may suddenly be very, very attractive. And for that to happen, it means a huge softening in its anti-Iran tone, which in turn will have a huge impact on regional geopolitics, and specifically the risk of war in Iran, and thus the price of Brent. All of this, of course assumes, Israel does not immediately retaliate against Egypt, recently a big recipient of US aid, not to mention tear gas, and start a pre-emptive two front pre-war…

 

Source: ZeroHedge

%d bloggers like this: