When U.S. independent Noble Energy, its partners and the Israeli government reached a deal recently on the development of the giant Leviathan gas field, it was good news. The industry needs all the projects it can get.

But the hoops the company has had to jump through are astonishing and indicate an alarming apparent lack of respect by Israel for what Noble has achieved.

It is great that Noble and its partners can now proceed with Leviathan. But conditions included it selling down other assets, including its stake in the flagship Tamar Field, where the recent completion of the Ashdod Onshore Terminal compression project increased peak gas deliverability to 34 MMcm/d (1.2 Bcf/d). It must also divest two other finds.

Israel has screwed down the gas sales price and made Noble commit to spending $1.5 billion within two years on Leviathan. This was accompanied by absurd comments from the country’s energy minister, Yuval Steinitz, who according to Reuters described “years of delays” in developing Leviathan as costing Israel “tens of billions of shekels.”

This displays a shocking ignorance—especially by an energy minister—of the practicalities of developing megaprojects and the technologies required, such as FLNG facilities and long-distance tiebacks.

Here’s an insightful timeline for you:
• Israel was almost totally dependent on outside energy sources for six decades.
• Noble committed to Israel when no one else would and found Mari-B in 2000.
• Israel imported coal, diesel and gas from its neighbors and in 2009 experienced a severe shortage of gas due to its main supplier—Egypt—providing only half its agreed amount.
• In 2009 Noble found Tamar and 254.9 Bcm (9 Tcf) of gas, appraised, developed and had it safely producing via the world’s longest subsea tieback by April 2013—2.5 years after project sanction. Noble invested $3.5 billion.
• Israel will benefit from an estimated $130 billion in energy savings and revenues over Tamar’s lifetime. Tamar also made Israel energy self-sufficient.
• In 2010 Noble found Leviathan, holding 481 Bcm (17 Tcf) and representing extra security for Israel’s domestic market.

“More gas and oil discoveries await us,” Minister Steinitz said, urging more foreign firms to invest in Israel. “There is no certainty on this matter, but there is a reasonable chance that further discoveries are waiting to be made.”

If he thinks the way Israel has treated Noble, an exemplary corporate citizen, indicates a cozy welcome for operators amidst possibly the industry’s worst downturn, he is sorely mistaken.

The country must understand and accept that explorers have the right to be recognized for what they do and be appropriately
rewarded over time, or else it will face a complete lack of interest.

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