Israeli energy exploration company, Givot Olam Oil Exploration L.P.(GIVO.L.TV) said Monday it would halt drilling at its Meged field in central Israel due to jammed pipes, just weeks after it discovered a flow of oil at the field.
Israeli energy exploration company, Givot Olam Oil Exploration
L.P.(GIVO.L.TV) said Monday it would halt drilling at its Meged field in
central
Israel
due
to jammed pipes, just weeks after it discovered a flow of oil at the field.
The company said it didn't know when drilling would resume or what the impact
of the suspension on its budget would be.
In November, Givot Olam said it discovered a flow of oil, at a rate of about
five barrels per minute, at its Meged field. According to its most recent
estimate, Givot Olam said the field may contain up to 7.8 million barrels of
oil.
The suspension delivers yet another blow to
Israel
's
developing energy sector. It follows news last week that drilling would be
delayed in the country's large offshore Leviathan gas field, controlled by
Delek Group Ltd. (DLEKG.TV) and
U.S.-
based
Noble Energy Inc. (NBL).
Givot Olam was founded by Jewish geologist Tovia Luskin, who claims that the
Bible promises oil will be found in
Israel
. The
company began looking for oil in
Israel
in
1992 and found the Meged reserve in 2004. Significant quantities of oil haven't
been found previously in
Israel
. In
recent years, however, large, commercial quantities of natural gas have been
discovered offshore
Israel
,
including the Leviathan field.
These increased natural gas reserves have in recent months boosted the Israeli
shekel, spurring market intervention and interest rate cuts by the central
bank.
At 0947 GMT, shares of Givot Olam were down 0.004 shekels, or 8.9%, at ILS0.041
($0.012) in a lower Tel Aviv market.
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