The following updates are based on information released by Delek Group gas subsidiaries, Delek Energy Systems Ltd., Avner Oil & Exploration L.P and Delek Drilling L.P. All financial and business information is given only for the convenience of the reader. The only official financial and business information, is that which is included in the officially published immediate reports and financial reports of Delek Group and its gas subsidiaries, to the Israeli Securities Authority and the Tel Aviv Stock Exchange, in Hebrew. In the event of any conflict between financial and business information given on this site and the Hebrew published immediate reports, the Hebrew published immediate reports shall prevail. More on Delek Group's disclaimer.
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|Amended Agreement Signed with Dalia Power Energies Ltd. for the Sale of Natural Gas|
Tel Aviv, July 24, 2012. Delek Group (TASE: DLEKG, OTCQX:DGRLY) ("the Company") subsidiaries, Delek Drilling L.P. and Avner Oil Exploration L.P. (together "the partnerships") published the following immediate report;
Further to the following immediate reports:
The partnerships are pleased to announce as follows:
On July 23, 2012, an amendment to the agreement for the supply of natural gas which was signed on January 8, 2012, between Dalia and Tamar Partners ("gas agreement"), according to which several provisions of the agreement were amended, whose main principals are detailed below. These were implemented following the requested changes required by Electricity Authority and Antitrust Authority.
Under the scope of the amended agreement, Dalia is entitled to exercise an option to reduce the minimum annual amount it has committed to purchase or pay for it (Take or Pay), such that it will not exceed 50% of the average annual amount that Dalia will consume during three years prior to exercising the option, subject to adjustment as determined in the gas agreement. In line with the reduced minimum annual amount, the rest of the agreed amounts of the natural gas to be supplied that were determined in the gas agreement will be reduced accordingly. Dalia will be entitled to exercise the abovementioned option, by a notice that will be given to Tamar partners during the period from the beginning of the fifth year of the supply of gas in commercial quantities ("date of the commercial operation"), or on January 1, 2018 (whichever is the earlier), and will terminate at the end of the seventh year of the date of the commercial operation or on December 31, 2020 (whichever is the latest). Should Dalia give notice on exercising the option as mentioned above, the amount will be reduced within or at the end of the year the notice was given. It was also determined under the scope of the amended agreement that Dalia may sell natural gas, which was purchased by it from the Tamar partners, to other distribution of gas consumers in a scope as determined in the gas agreement.
It should be noted that the scope of the actual revenue from the gas agreement is derived through multiple factors, including the exercise of the option (should it be implemented) and its date, the actual volumes of gas purchased by Dalia and the electricity production rate.
Percentage holdings in the Tamar Leases are as follows:
This is a convenience translation of the recent HEBREW immediate reports issued to the Tel Aviv Stock Exchange by the Company on July 24, 2012.
About The Delek Group
The Delek Group, Israel's dominant integrated energy company, is the pioneering leader of the natural gas exploration and production activities that are transforming the Eastern Mediterranean's Levant Basin into one of the energy industry's most promising emerging regions. Having discovered Tamar and Leviathan, two of the world's largest natural gas finds since 2000, Delek and its partners are now developing a balanced, world-class portfolio of exploration, development and production assets with total gross natural gas resources discovered since 2009 of approximately 33 TCF.
In addition, Delek has built an extensive network of global downstream assets, including 1,900 gas stations and convenience stores in the U.S., Europe and Israel, and petroleum refineries in the U.S. Delek also holds significant interests in leading water desalination, power generation, insurance and automotive companies.
In 2011, the Company's revenues were NIS 59 billion. Delek Group's shares are traded on the Tel Aviv Stock Exchange (TASE: DKLG) as part of the TA25 Index.