Israel lawmakers approve gas development deal, obstacles remain
(Adds details, Netanyahu comment)
By Steven Scheer
JERUSALEM, Sept 7 (Reuters) - Israel's parliament on Monday approved a deal that would enable the development of three offshore natural gas fields, although significant regulatory hurdles remain.
In a non-binding vote, lawmakers voted 59-51 in favour of an outline plan that would allow the large Leviathan gas field and two smaller ones to be developed by a consortium led by Noble Energy and Israel's Delek Group.
But for the government and companies to move forward with the framework agreement, which was opposed by the competition regulator, parliament still needs to approve a measure that transfers power to override the regulator from the Economy Ministry to the cabinet.
It was unclear when such a vote would take place since Prime Minister Benjamin Netanyahu may not have the support of enough of his coalition partners to drive through such a move. Economy Minister Aryeh Deri has said he wants to wait until a new regulator is in place.
Netanyahu has pushed hard for the deal despite objections of the regulator, who resigned over the matter, that Noble and Delek would hold most of Israel's natural gas reserves.
The companies also own large stakes in the Tamar field, which started production in 2013 and has reserves of 10 trillion cubic feet (tcf).
At 22 tcf, Leviathan was initially slated to begin production in 2018 with most of the gas earmarked for exports, but that will likely not be the case.
Noble in a statement urged Israel's government to implement the deal as quickly as possible. "After final approval we can complete the required export contracts, rebuild the work teams ... and raise the external financing needed," it said.
Monday's vote, which could be aimed at preventing Noble from seeking international arbitration, comes just a week after Italian energy group Eni said it had found 30 tcf of gas in the Zohr field off Egypt, muddying the waters for Israel's gas sector.
As part of the deal initially reached in June, Noble and Delek would be allowed to keep ownership Leviathan, but would be required to sell off other assets, including stakes in Tamar.
Critics say the deal still leaves too much of the gas reserves in the hands of Noble and Delek, which could keep prices high.
The agreement has become the focus of national debate with critics saying Netanyahu was putting energy profits above what could be a windfall for the state and citizens hoping to lower energy prices. But Netanyahu believes the more pressing issue is to get the gas out of the ground and fast-track development of Israel's natural resources.
Netanyahu, who holds a one-seat majority in parliament, told reporters after the vote: "There is one obstacle left and we will overcome it." (Additional reporting Tova Cohen and Maayan Lubell; Editing by Mark Potter)
