11 April 2012
US Boosts Middle East Oil Deals in Israel
[Federal Register Volume 77, Number 70 (Wednesday, April 11, 2012)]
[Notices]
[Pages 21748-21750]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-8608]
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DEPARTMENT OF COMMERCE
International Trade Administration
Oil and Gas Trade Mission to Israel
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice.
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Mission Description
The United States Department of Commerce (DOC), International Trade
Administration (ITA), U.S. and Foreign Commercial Service (CS), is
organizing an Executive-led Oil and Gas Trade Mission to Israel,
October 27-October 31, 2012. This mission is designed to be led by a
Senior Commerce Department official. The purpose of the mission is to
introduce U.S. firms to Israel's rapidly expanding oil and gas market
and to assist U.S. companies pursuing export opportunities in this
sector. The mission to Israel is intended to include representatives
from leading U.S. companies that provide services to oil and gas
facilities, from design and construction through to project
implementation, maintenance of facilities, and environmental
protection. The mission will visit Tel Aviv and Jerusalem, and will
include a visit to a to-be-determined site (e.g., port or company
office). Mission participants will attend the 2012 Israel Energy and
Business Convention. Held for the 10th consecutive year, by Eco Energy
and Tachlit Conferences, this is Israel's major energy forum. The
convention assembles representatives of companies and senior Israeli
and foreign policy makers, bringing them together with the Israeli
financial and business community.
The mission will help participating firms gain market insights,
make industry contacts, solidify business strategies, and advance
specific projects, with the goal of increasing U.S. exports to Israel.
The mission will include one-on-one business appointments with pre-
screened potential buyers, agents, distributors and joint venture
partners; meetings with government officials; and high-level networking
events. Participating in an official U.S. industry delegation, rather
than traveling to Israel on their own, will enhance the companies'
ability to secure meetings in Israel.
Commercial Setting
The United States is Israel's largest single country trade partner.
Since the U.S.-Israel Free Trade Agreement entered into force in 1985,
U.S.-Israel trade has grown nine-fold. Since 1995 nearly all trade
tariffs between the U.S. and Israel have been eliminated. Exports of
U.S. goods to Israel in 2010 were $6.7 billion. In September 2010,
Israel joined the Organization for Economic Co-operation and
Development.
Israel has an advanced market economy. As of 2010, Israel has the
24th largest economy in the world. Historically poor in natural
resources, Israel depends on imports of petroleum, coal, natural gas
and production inputs, though the country's nearly total reliance on
energy imports will likely change with recent discoveries of large
natural gas reserves off its coast.
In accordance with the OECD's Green Growth Declaration of 2009, the
Government of Israel formed a Green Growth Round Table to bring about
regulatory, budgetary and environmental policy changes between 2012 and
2020. Therefore, there may be sub-sector opportunities in environmental
protection and pollution treatment, for onshore and offshore
activities.
Natural Gas
In 2009 and 2010, the greatest natural gas discoveries of the
decade were made off the coast of Israel: The Tamar and Leviathan
fields. These fields may have the capacity to support Israel's domestic
gas consumption with reserves left for exports, and related platform
chemicals. The U.S. Geological Survey estimates that there are 122 TCF
of recoverable gas in the region, most of it in Israeli waters.\1\ In
March 2012, another offshore discovery was made by Modiin and Adira
Energy northwest of Tel Aviv, with an estimated 1.8 TCF of natural gas
as well as oil.\2\
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\1\ US Geological Survey. Assessment of Undiscovered Oil and Gas
Resources of the Levant Basin Province. <http://pubs.usgs.gov/fs/2010/3014/
pdf/FS10-3014.pdf>.
\2\ ``Oil and Gas Found at Gabriella, Yitzhak Licenses.'' Globes
Israel Business News. 13 Mar. 2012. <http://www.globes.co.il/serveen/globes/
docview.asp?did=1000732741>.
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Israel's offshore natural gas reserves are estimated around 30
trillion cubic feet, however further exploration is needed. The
Ministry of Energy and Water Resources' (MEWR) Petroleum Unit and
Petroleum Council are responsible for issuing petroleum prospecting
licenses in Israel. After the Tamar and Leviathan discoveries, numerous
licenses to initiate petroleum prospecting were granted. According to
the Petroleum Law, license owners must begin petroleum prospecting
within 4 months of license issuance, commence drilling operations no
later than two years following license issuance, and the interval
between the drilling of one well and another cannot exceed 4 months.
Consequently, it is likely that various drilling operations will
commence in 2012. Because Israel does not yet have the physical
infrastructure and technical workforce to support this fast growing
industry, local companies are eager to team up with U.S. companies.
Finally, Minister of Energy and Water Resources, Uzi Landau is
committed to bringing foreign companies into Israel for continued gas
exploration, and its eventual export.
The Committee on Energy Policy, recommends setting aside 50 percent
of the Tamar and Leviathan gas resources for export. Final decisions on
exports will be made in the coming months. All natural gas export
facilities will be located in areas under Israeli control.
Opportunities exist for prospectors, operators, pipeline construction,
logistical services and ship manufacturers. Technical training services
are required to build a workforce and there are opportunities for
academic cooperation with local universities and colleges.
Oil
In March 2010, the U.S. Geological Survey reported that there is an
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estimated 1.7 billion barrels of recoverable oil in Israel.\3\ The
World Energy Council estimates Israel's shale deposits could ultimately
yield as many as 250 billion barrels of oil.\4\ In May 2011, the
Russian energy company Inter RAO announced that it had received a
license to develop oil shale resources in the Negev desert. In March
2012, another offshore discovery was made by Modiin and Adira Energy
northwest of Tel Aviv, with an estimated 128 million barrels of oil, as
well as natural gas.\5\ The Meged Field may also contain significant
oil reserves. In June 2011, Israeli oil exploration company, Givot
Olam, announced that its test production site, Meged 5, was producing
800 barrels a day. According to a report by the international
consultancy Baker Hughes, Givot Olam will develop Meged 6 and Meged 7
and perform well stimulation for all its drillings; in the next stage
the company will drill up to 40 wells throughout the Meged field.\6\ In
February 2012, MEWR approved continued production at Meged 5, and
development of Meged 6-14 drillings.\7\
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\3\ US Geological Survey. Assessment of Undiscovered Oil and Gas
Resources of the Levant Basin Province. <http://pubs.usgs.gov/fs/2010/3014/
pdf/FS10-3014.pdf>.
\4\ ``Oil Shale Country Notes: Israel.'' World Energy Council
for Sustainable Energy. <http://www.worldenergy.org/publications/survey_of_
energy_resources_2007/oil_shale/country_notes/2005.asp>.
\5\ ``Oil and Gas Found at Gabriella, Yitzhak Licenses.'' Globes
Israel Business News. 13 Mar. 2012. <http://www.globes.co.il/serveen/globes/
docview.asp?did=1000732741>.
\6\ Meged Field Reserves Classification. Rep. Baker Hughes, Mar.
2011. <http://www.givot.co.il/english/data/images/Media/GIVT0001%20Final
%20Report%20rev3.pdf>.
\7\ ``Energy Ministry Approves Meged Field Development.'' Globes
Israel Business News, 30 Jan. 2012. <http://www.globes.co.il/serveen/globes/
docview.asp?did=1000720122>.
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Many oil exploration licenses are set to expire in 2012 and 2013.
Exploration companies are limited to how many licenses they can hold in
Israel, and given the success of several exploration projects, there
are opportunities for U.S. companies to enter Israel's oil exploration
market.
Mission Goals
The mission will help U.S. companies increase their export
potential to Israel by identifying profitable opportunities in Israel's
natural gas and oil market. As such, the mission will focus on helping
U.S. companies obtain market information, establish business and
government contacts, solidify business strategies, and/or advance
specific projects.
The mission's goals include:
Facilitating first-hand market exposure and access to
government decision makers and key private-sector industry contacts,
including potential trading partners;
Promoting the U.S. energy industry by connecting
representatives of U.S. companies with potential trading partners;
Helping companies gain valuable international business
experience in the rapidly growing energy industry; and,
Helping U.S. companies strengthen their engagement in the
worldwide marketplace, leading to increased exports and job creation.
Mission Scenario
Participants will attend country briefings, seminars and meetings
with government decision makers and key private-sector industry
contacts, including potential trading partners. Participants will also
receive briefings on natural gas opportunities in Greece and Cyprus.
Networking events will provide mission participants with further
opportunities to speak with local business and government
representatives, as well as with business executives of major U.S.
companies already established in Israel.
The mission will begin in Tel Aviv, where participants will receive
market briefings and learn about doing business in Israel. Next, the
delegates will participate in the Israel Energy and Business Convention
2012, Israel's major energy forum. Here the participants will be able
to learn about the market, meet with potential customers and network
with all relevant players from the public and private sector. The
convention will include plenary sessions, panel discussions, lectures,
investment advice and exhibitions. Commercial Service Tel Aviv will
arrange one-on-one business meetings with potential buyers and partners
for all trade mission participants.
Next, the delegation will be led on a site visit. Probable site
visits include Ashdod Port and Noble Energy offices. Finally, the
delegation will visit the MEWR in Jerusalem to learn about the state of
the oil and gas industry in Israel.
The precise agenda will depend upon the availability of local
government and private sector officials, as well as on the specific
goals and makeup of the mission participants.
Notional Timetable
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Saturday, October 27, 2012... Tel Aviv.
[cir] Participants arrive in the AM.
[cir] Afternoon Embassy briefing,
doing business in Israel seminar.
Sunday, October 28, 2012..... Tel Aviv.
[cir] Participation in Israel Energy
and Business Convention 2012.
[cir] One-on-one meetings.
[cir] Dinner with trade mission lead
and relevant government of Israel
senior officials.
Monday, October 29, 2012..... Tel Aviv.
[cir] Participation in Israel Energy
and Business Convention 2012.
[cir] One-on-one meetings.
[cir] Networking reception with
Israeli companies.
Tuesday, October 30, 2012.... Tel Aviv.
[cir] Site visit to port, or Noble
Energy Inc. offices.
[cir] Reception and Ambassador's
residence.
Wednesday, October 31, 2012.. Jerusalem.
[cir] Relevant government meetings.
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Participation Requirements
All parties interested in participating in the trade mission must
complete and submit an application package for consideration by DOC.
All applicants will be evaluated on their ability to meet certain
conditions and best satisfy the selection criteria as outlined below.
U.S. companies already doing business with
[[Page 21750]]
Israel as well as U.S. companies seeking to enter to the Israeli market
for the first time may apply. A minimum of 10 and a maximum of 20
companies will be selected for participation in this mission.
Fees and Expenses
After a company has been selected to participate on the mission, a
payment to the DOC in the form of a participation fee is required. The
participation fee is $3,285 for large firms and $2,675 for a small or
medium-sized enterprise (SME) \8\, which covers one representative. The
fee for each additional representative is $500.
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\8\ An SME is defined as a firm with 500 or fewer employees or
that otherwise qualifies as a small business under SBA regulations
(see http://www.sba.gov/services/contracting_opportunities/sizestandards
topics/index.html). Parent companies, affiliates, and
subsidiaries will be considered when determining business size. The
dual pricing reflects the Commercial Service's user fee schedule
that became effective May 1, 2008 (see http://www.export.gov/newsletter/
march2008/initiatives.html for additional information).
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Participants in Israel Energy and Business Conference will pay
show-related expenses directly to the show organizer. Expenses for
travel, lodging, meals, and incidentals will be the responsibility of
each mission participant. Delegation members will be able to take
advantage of U.S. Embassy rates for hotel rooms.
Conditions for Participation
An applicant must submit a completed and signed mission application
and supplemental application materials, including adequate information
on the company's products and/or services, primary market objectives,
and goals for participation. If the Department of Commerce receives an
incomplete application, the Department may reject the application,
request additional information, or take the lack of information into
account when evaluating the applications.
Each applicant must also certify that the products and services it
seeks to export through the mission are either produced in the United
States, or, if not, marketed under the name of a U.S. firm and have at
least 51 percent U.S. content of the value of the finished product or
service.
Selection Criteria for Participation
Suitability of the company's products or services to the
market.
Applicant's potential for business in the targeted
industries in Israel, including likelihood of exports resulting from
the mission.
Consistency of the applicant's goals and objectives and
business with the stated scope of the mission.
Diversity of company size, sector or subsector, and
location may also be considered during the review process.
Referrals from political organizations and any documents containing
references to partisan political activities (including political
contributions) will be removed from an applicant's submission and not
considered during the selection process.
Timeframe for Recruitment and Applications
Mission recruitment will be conducted in an open and public manner,
including publication in the Federal Register, posting on the Commerce
Department trade mission calendar (http://www.ita.doc.gov/doctm/tmcal.html)
and other Internet Web sites, press releases to general and
trade media, direct mail, notices by industry trade associations and
other multiplier groups, and publicity at industry meetings, symposia,
conferences, and trade shows. Recruitment for the mission will conclude
no later than August 24, 2012. The U.S. Department of Commerce will
review applications and make selection decisions on a rolling basis
beginning May 21, 2012, until the maximum of 20 participants is
selected. Applications received after August 24, 2012 will be
considered only if space and scheduling constraints permit.
Contacts
U.S. Commercial Service Tel Aviv
Ms. Irit van der Veur, Senior Commercial Specialist, 972-3-519-
7540, irit.vanderveur@trade.gov.
U.S. Commercial Service Washington, DC
Mr. David McCormack, International Trade Specialist, 202.482.2833,
david.mccormack@trade.gov.
Elnora Moye,
Trade Program Assistant.
[FR Doc. 2012-8608 Filed 4-10-12; 8:45 am]
BILLING CODE 3510-FP-P
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