The sensor cannot reach the bottom of the borehole.
Givot Olam Oil Exploration LP (TASE:GIVO.L) notified the TASE today that the electric log sensor was only able reach a depth of 4,450 meters in the 4,754 borehole of the Meged 6 oil well. The company adds that it is uncertain why it cannot lower the sensor to bottom of the borehole, but that residual mud might be the reason.
In addition, the logs taken at a depth of 4,450 meters are equivocal about the presence of cement and its quality.
With the funds Ruppin College will set up a center to train energy industry employees.
Noble Energy Inc. (NYSE: NBL) will set up a center to train workers in the energy and natural gas industry at Ruppin Technological College for an investment of NIS 12 million. The center will open in October 2014. It will offer training technicians in the natural gas industry, workshops, and seminars for the Israeli market.
Noble Energy will offer the knowhow for building a training program, provide guest speakers, and equipment.
"The start of gas flow from Tamar in April 2013 boosted demand for qualified workers in the oil and gas industry. The new center's training programs are intended to meet this growth in demand, as the conversion to natural gas continues, and the Leviathan field is developed," said Noble Energy.
Ruppin College general manager Tami Zukerman said, "We welcome the collaboration with one of the world's largest energy companies and its willingness to invest knowhow and experience for the training of skilled workers for Israel's natural gas industry."
Israel's natural gas industry is expected to employ thousands of skilled workers at onshore and offshore facilities, pipelines and other infrastructures, and at enterprises. The training program was jointly developed by the Ministry of the Economy and the Natural Gas Authority on the assessment that at least 3,000 skilled workers will be needed by the industry over the next five years.
Those who Bless Israel Will Be Blessed!
Criticism followed dry holes drilled by operators with just 5% of license rights.
The Ministry of National Infrastructures plans to raise the minimum holding in oil and gas licenses to 20%. The measure is in response to the widespread criticism that Israel allows ephemeral companies to operate offshore wells. The criticism intensified following the string of dry holes drilled by well operators that owned just 5% of the license rights.
The criticism argues that, in addition to the lack of experience and skills, the well operators had no incentive to discover gas because they were not required to invest equity and would not benefit from revenue in the event of a discovery.
In most countries, well operators own at least 30% of a drilling license and share proportionately in expenses and profits. Noble Energy Inc. (NYSE: NBL), which discovered all of Israel's offshore gas fields, owns at least 30% in all the licenses.
Israel has argued that foreign companies were not prepared to come to the country if it raised the rights threshold above 5%. Well operators that agreed to come included the Indian unit of Canada's GeoGlobal Resources Inc. (Bulletin Board: GGGR), which has an annual turnover of a few hundred thousand dollars, and Azerbaijan's Caspian Drilling Company Ltd.
In October 2013, the Ministry of National Infrastructures notified the Yam Hadera and Gabriella licensees that it intended to raise the rights of the well operators, but never announced the new threshold.
Tovia Luskin: You lack the understanding, knowledge, and skills to serve as directors.
"I have been CEO since the company was founded, without any compensation for my job (because you have refused to pay me such compensation), and I have brought the company to huge achievements," said Givot Olam Oil Exploration LP (TASE:GIVO.L) CEO Tovia Luskin, in response to the board of directors effort to oust him.
"The company's success is thanks to my efforts and the hard work I have invested indefatigably, while you have not lifted a finger in managing the company, or even invested any capital in it. Instead, for a long time, you have been busy solely with unnecessary power struggles for personal gain rather than for the good of the company."
Luskin slammed the directors, saying, "I regret to say that you lack the understanding, knowledge, and skills to serve as directors of the company, and you serve solely on the basis of historical agreements. Instead of being happy at the company's success, to which you have contributed nothing, and even though you profited hugely from it, you do not desist from undermining proper management. Your attempt to fire the CEO at this time is the best expression of the quality of your actions and your utter lack of judgment."
Luskin added that if he is fired as CEO, he will not continue to serve as Givot's chief geologist. "I cannot assume the responsibility for operations, and all that that involves, outside my capacity as CEO, and I have no intention of doing so in any case," he concluded in his letter to the board.
In a separate development, Givot today notified the TASE that it has not obtained the electrical logs from the newly completed Meged 6 oil well, because of conditions in the borehole. The company needs the logs to draw up a plan for production tests. In the absence of the necessary logs, it will use the logs from the Meged 5. The company plans to complete the casing of the borehole.
The reasons are disagreements and dissatisfaction with Tovia Luskin's performance.
The board of directors of Givot Olam Oil Exploration LP (TASE:GIVO.L) has summoned CEO and chief geologist Tovia Luskin to a pre-dismissal hearing over dissatisfaction with his performance.
In a notice to the Tel Aviv Stock Exchange (TASE) this morning, Givot said, "It was decided to summon Mr. Tovia Luskin to a hearing before taking a decision on the continuation or the termination of his term as CEO (but not on his responsibility for operations), because of disagreements and dissatisfaction of the board of directors with his performance as CEO."
Givot director Samuel Laurence Becker refused to divulge with shareholders the reasons for the summons for Luskin. He declined to discuss the disagreements between Luskin and the board, saying, "I do not want to talk about it. When there is a hearing, we can report more. The hearing will be held very soon."
Last week, Givot announced the completion of the Meged 6 oil well and preparations for production tests.
Regional media reports over the weekend indicated that Israel is set to accept US Secretary of State John Kerry's framework proposal for reaching a final status peace agreement, while the Palestinians are looking to stall or outright reject the plan.
Israel's Channel 2 News reported that Prime Minister Benjamin Netanyahu, Defense Minister Moshe Ya'alon and Foreign Minister Avigdor Lieberman are all prepared to sign off on a non-binding version of the proposals, which, among other things, recommends:
•The division of Jerusalem, though without going into specifics;
•A gradual Israeli withdrawal from most of the "West Bank," while retaining control over large Jewish settlement blocs;
•A limited land swap to compensate the Palestinians for the settlement blocs;
•Recognition of Israel as a "Jewish state"; and
•Compensation for so-called "Palestinian refugees," but no "right of return" to Israel-proper
Israel's Ma'ariv newspaper last week quoted senior Palestinian Authority official Yasser Abed Rabbo as rejecting the American proposal as "Israeli ideas."
Like his boss, Palestinian leader Mahmoud Abbas, Rabbo has made the "right of return" for millions of Palestinians to Israel a non-negotiable point in the peace process.
On the related point of recognizing Israel as a "Jewish state," chief Palestinian negotiator Saeb Erekat told his audience at a conference in Munich last week that he could never agree to such a condition, as doing so amounted to "asking him to change his narrative."
Erekat went on to claim that his ancestors had lived in the region for "5,500 years before [biblical leader of Israel] Joshua Ben-Nun came and burned my hometown Jericho." Of course, such a claim means that Erekat and his Palestinian Authority colleagues are either liars, or are in possession of time-travel technology.
You see, the Palestinians claim to be Arabs. They also rightly claim that the Arabs are descendants of Abraham through his son Ishmael. And, as any casual student of history knows, Jericho was around long before the time of Abraham, meaning that the patriarch's offspring couldn't possibly have been around for the founding of the "oldest city on earth."
Meanwhile, Abbas' envoy to Iran, Jibril Rajoub, avoided such flights of fancy, and went straight to making threats. "If the talks fail, armed struggle against [Israel] could be a strategic solution for the Palestinian people," Rajoub was quoted as telling Iranian media, emphasizing that Palestinians "never abandoned the solution of an armed uprising."
The company will carry out production tests at the well in the second quarter.
Givot Olam Oil Exploration LP (TASE:GIVO.L) notified the Tel Aviv Stock Exchange (TASE) today that it has completed drilling of the Meged 6 oil well near Rosh Ha'Ayin, and that it will carry out production tests during the second quarter of 2014. The well's final depth is 4,754 meters.
Givot added that it would publish a detailed plan for the production tests, after the processing and analysis of the log data collected during the drilling are completed. It intends to carry out electrical logs and prepare the well for the production tests, which it estimates will take three months.
At the order of the authorities, Givot will drill a water monitoring well before beginning the tests. When this well is completed, the company will order the testing equipment.
Givot began drilling the Meged 6 well in June 2013, but halted work in December at a depth of 3,860 meters, well the piping got stuck. In late December, it decided to drill a bypass well around the stuck borehole pipes. The bypass and failed attempt to retrieve the stuck pipes cost $2.7 million.
No matter how small an energy company is, it is going to have to deal with the politics of energy. However, independent oil and gas producer Noble Energy (NYSE: NBL ) had no idea what it started when it agreed to drill in the Eastern Mediterranean between Cyprus and Israel. Now, the company is unwillingly at the heart of political deals that could see the formation of a new type of OPEC, one that would include both Russia and the production of natural gas. Let's take a look at how it got here and whether making enemies with 45% of the world's oil wealth means trouble for Noble.
It seemed like a good idea at the time
Back in the mid '90s, the management team of Noble -- which was at the time called Samedan Oil Corp -- was contacted about the possibility of drilling for natural gas off the coast of Israel. Noble wasn't the first choice, but big oil players like ExxonMobil (NYSE: XOM ) and BP (NYSE: BP ) weren't going to risk their big production sharing contracts in the Middle East for a highly speculative field in Israel. Noble didn't have any connections to Arab countries, so the company took a flier and took an operational stake in several operating leases in the Eastern Mediteranean. Fifteen years later and now the company and its partners have stumbled on more than 35 trillion cubic feet of potential resources in just a part of its leases.
If this particular field had been anywhere else in the world, it would barely make a news headline. Since it's in the Eastern Mediterranean, though, it has ruffled the feathers of some of the biggest players in the oil and gas space, most notably Russia. It's national natural gas company Gazprom and Norwegian company Statoil (NYSE: STO ) provide the European continent with more than 40% of its natural gas, and natural gas represents 10% of Russia's GDP. This natural gas find from Noble is one of the few natural gas fields that could potentially supply Europe using pipelines, which would break the duopoly. Based on recent backdoor political conversations, Russia isn't happy about it.
Sowing the seeds for a new global power in the oil and gas markets
Both Russia and OPEC have been seen much better times than recently. Russia's state budgets have been tight lately, and since it relies on oil and gas royalties for 50% of its revenue, it needs oil above $100 a barrel to maintain its healthy budget. OPEC has had its own problems as well. Production issues in places like Nigeria and Libya have made the group increasingly reliant on the other members to pick up the slack, and increased production from other parts of world like America's shale boom has resulted in less influence in the market. These events, and Noble's gas discoveries in the Med, may bring these two factions together in ways that many didn't think possible.
In a meeting between Saudi Arabia's head of intelligence and Russian President Vladimir Putin, the Saudis made it clear that it would offer "cooperation" in the form of billion-dollar investments in gas processing and petrochemical facilities in the Russian market to boost its competitiveness against Eastern Mediterranean gas, and even use its influence with Turkey if necessary to prevent natural gas pipelines.
But here is the real doozy, this could set the wheels in motion toward a strategic alliance between Russia and OPEC. Combined, they would represent more than 45% of the world's oil production and 37% of the world's natural gas supply. This would give the combined group an unprecedented level of price control and a resurgence as the pre-eminent power in the global oil markets.
What a Fool believes
Noble Energy probably didn't realize the political consequences that an immense amount of natural gas in the Mediterranean, but now it finds itself managing an extremely politically contentious environment. If this was a bigger oil and gas company like an ExxonMobil or a BP, this would be less of a big deal because the amount of natural gas for them would be rather inconsequential. For Noble, though, this represents more than 30% of the company's proved reserves. If Russia and Saudi Arabia were to obstruct the development plans of this field, it could spell trouble for the company. Also, it will also be difficult for Noble to sell off any interest in this field because Saudi Arabia and other countries in the Middle East that wouldn't be too pleased with companies with ties there if they were to cooperate with Israel.
Only time will tell if these political negotiations between Saudi Arabia and Russia ever amount to anything, but the implications of these two forces uniting are huge for the international price of oil. High-level deals like this simply go to show that even the biggest players in the industry are extremely small cogs in a much larger, more complex machine than many of us realize.
Canadian PM met with many standing ovations, but in the end, was treated like family and interrupted by Arab MKs who relegated him to the Likud's benches.
Canadian Prime Minister Stephen Harper received a very warm welcome in the Knesset Monday.
The first speech in the Knesset by a Canadian prime minister was peppered with standing ovations, the enthusiastic likes of which may not have been seen since Prime Minister Binyamin Netanyahu addressed the US Congress in 2011.
Statements like “through fire and water, Canada will stand with you” were met with rousing rounds of applause, and though clapping is against Knesset protocol, even Speaker Yuli Edelstein joined in.
The Canadian premier said he believes “it is right to support Israel because, after generations of persecution, the Jewish people deserve their own homeland and deserve to live safely and peacefully in that homeland.
“Let me repeat that: Canada supports Israel because it is right to do so,” he emphasized. “It is... a Canadian tradition to stand for what is principled and just, regardless of whether it is convenient or popular.”
“The friendship between [Israel and Canada] is rooted in history, nourished by shared values, and it is intentionally reinforced at the highest levels of commerce and government as an outward expression of strongly held inner convictions,” Harper said in French and English.
Some of those shared values are “freedom, democracy and rule of law,” in which Israel “has long anchored itself,” he said.
“These are not mere notions,” he added. “They are the things that, over time and against all odds, have proven to be the only ground in which human rights, political stability and economic prosperity may flourish.”
Palestinians also deserve these things, Harper said, expressing support for “a viable, democratic Palestinian state, committed to living peacefully alongside the Jewish state of Israel,” though, “sadly, we have yet to reach that point.”
“I believe that a Palestinian state will come, and one thing that will make it come is when the regimes that bankroll terrorism realize that the path to peace is accommodation, not violence,” Harper stated.
Despite the nearly wall-towall support for Harper’s words as expressed by the many standing ovations, the “robustness of Israeli democracy,” as Netanyahu called it, was demonstrated several times with Arab MKs interrupting the Canadian minister as he spoke about anti-Semitism in some criticisms of Israel.
“We have witnessed in recent years the mutation of the old disease of anti-Semitism and the emergence of a new strain.... People who would never say they hate and blame the Jews for their own failings or the problems of the world, instead declare their hatred of Israel and blame the only Jewish state for the problems of the Middle East. As once Jewish businesses were boycotted, some civil-society leaders today call for a boycott of Israel,” Harper stated.
“Don’t mislead; we want to boycott settlements,” MK Ahmed Tibi (UAL-Ta’al) interrupted in English.
“Most disgracefully of all, some openly call Israel an apartheid state,” Harper continued, as MK Taleb Abu Arar (UAL-Ta’al) shouted: “It is.”
“Think about the twisted logic and outright malice behind that: a state, based on freedom, democracy and the rule of law, that was founded so Jews can flourish, as Jews, and seek shelter from the shadow of the worst racist experiment in history, [a state] that is condemned – and that condemnation is masked in the language of anti-racism. It is nothing short of sickening. But this is the face of the new anti-Semitism,” Harper went on.
Tibi pointed at the coalition’s side of the plenum, shouting “That’s where the Likud sits; you should be there,” and then he and Abu Arar demonstratively walked out as the audience cheered Harper for his comments against anti-Semitism.
“What else can we call criticism that selectively condemns only the Jewish state and effectively denies its right to defend itself while systematically ignoring – or excusing – the violence and oppression all around it?” the Canadian prime minister asked. “What else can we call it when Israel is routinely targeted at the United Nations, and when Israel remains the only country to be the subject of a permanent agenda item at the regular sessions of its human rights council?” Edelstein, who spoke before Harper, commented to him after his speech: “You’re not a guest, you’re family, because there were interruptions, which is unusual for foreign guests.”
Earlier, Netanyahu gave a speech in support of Harper, breaking protocol to give large swaths of it in English.
“You are a true friend in Israel,” he said. “The people in Israel thank you for your steadfast support.”
Netanyahu commended Harper for his “courage to stand for the truth and courage to say it” when faced with people “who try to deny the connection between [the Jewish people] and our land. You know the facts of our past well.”
Describing the necessity of security arrangements in the event of a peace agreement, Netanyahu quipped: “If I’m not mistaken, Yonge Street [in Toronto] is longer than the State of Israel, so we have no margin of error.”
“There are thousands of miles between the large Canada and the small – larger than life but physically small – Israel, but our nations are close.
It’s deep in our hearts,” Netanyahu stated. “We will always see Canada as a close friend.”
Opposition leader Isaac Herzog (Labor) dedicated much of his speech to the Toynbee- Herzog debate at McGill University in 1961, in which his uncle, then-ambassador to Canada Yaakov Herzog, debated notoriously anti-Semitic British historian Arnold Toynbee.
“Since you’re part of the family, I won’t hide our disagreements,” Herzog said. “I believe we need to separate ourselves from the Palestinians while protecting Israeli security.
We need a Palestinian state near an Israeli one, based on 1967 lines with land swaps while annexing settlement blocs... We have to try everything for peace and back the great effort US Secretary of State John Kerry is investing and give him a chance,” Herzog stated.
“Enough is enough,” he added in English, and in a reference to Canadian-Jewish singer-songwriter Leonard Cohen called to “let the dove free.”
Herzog also did not miss the chance to take a dig at Netanyahu and his breach of protocol, pointing out that “the official languages here are Hebrew and Arabic, not English.”
As Christians of every stripe in Jesus' hometown of Nazareth begin to again take a real stand for their faith, local Muslims are warning them not to overstep the boundaries of their traditional place in the Middle East (hint: they must remain dhimmis, or second-class).
A large billboard hanging at a central point in Nazareth features a picture of an Israeli stop sign, along with the English translation of a verse from the Koran cautioning Christians (and Jews) to speak only the "truth" regarding Allah.
The poster (and Koran 4:171) reads:
"O people of the Scripture (Christians)! Do not exceed the limits of your religion. Say nothing but the truth about Allah (The One True God). The Christ Jesus, Son of Mary, was only a Messenger of God and His word conveyed to Mary and a spirit created by Him. So believe in God and His messengers and do not say: 'Three gods (trinity)'. Cease! It will be better for you. Indeed, Allah is the One and the Only God. His Holiness is far above having a son."
Evangelical Christians from Nazareth have become a growing and integral part of the overall Messianic body in the land, while traditional Christians (Catholics, Greek Orthodox, etc) have been waking up to their historical and religious connection to the Jews and are joining the Israeli army in ever greater numbers.
Terrorists operating out of the Sinai Peninsula fired two missiles at the southern Israel resort town of Eilat on Monday. The missiles hit not far from Eilat's crowded hotel district, but did not cause any damage or injuries.
An Egyptian Salafi group claimed credit for the attack.
Hours later, Palestinian forces in the Gaza Strip fired three missiles into southern Israel. All three landed in open areas.
Children in southern Israel attending schools that have not yet been reinforced against missile fire were told to stay home for fear of an escalation in attacks from Gaza.
As Egypt's new military-backed regime continues to battle Salafi and other Islamist groups at home, it has reportedly been warning Hamas and allied terror groups in Gaza to stop attacking Israel.
An Islamic Jihad official was quoted by Voice of Israel Radio as saying that Cairo had told Hamas to curb rocket fire against Israel's southern Negev region. Last week, Egyptian army sources suggested that after they are done with the Muslim Brotherhood, they are coming for Hamas.
Apparently, the threats are working, because Israel Radio reported on Tuesday that Hamas has deployed hundreds of troops along the Gaza border to prevent smaller local terror groups from launching rockets at the Jewish state.