Isramco seeks to buy bankrupt ATP's right in offshore Israel Shimshon field
BY SARA TOTH STUB
JERUSALEM -- Isramco Negev 2 partnership said that it has submitted a court petition to buy the rights of its partner, ATP Oil and Gas, in Israel's offshore Shimshon natural gas field for $39.7 million .
Isramco and its affiliates own 60% of the Shimshon field, and ATP, which filed for bankruptcy last year, owns 40%. Because ATP has filed for bankruptcy, a court must approve the sale, Isramco said. The Shimshon field likely contains up to 2.3 Tcf of gas, according to geological surveys.
ATP is one of the few foreign energy companies involved in Israel's recent natural gas and oil discoveries. Natural gas production is poised to become a major contributor to Israel's economic growth this year. With the large offshore Tamar reserve, which contains about 9 Tcf of gas, set to begin production this year, Israel's gross domestic product is expected to grow 3.8%, according to the Bank of Israel. Without taking into account the production of gas, the bank said it would expect the GDP to only grow 2.8%. Israel's GDP grew 3.3% in 2012.
Dow Jones Newswires