Israeli group Isramco has decided to relinquish the licenses to develop the Daniel gas fields in the Mediterranean Sea off Israel. The exploration licenses - Isramco holds 65% of the licenses, while Modiin Energy holds 15% - were granted in 2011, will expire in April 2018 and may not be extended. Partners have thus decided to return the licenses, citing a lack of investors to start the project, geological risks and difficulties in commercialising the gas.
In January 2016, Isramco and Modiin Energy announced large gas reserves in the Daniel East and West licenses: the Og prospect in the Daniel East license would hold a prospective reservoir of 1.1 tcf (31 bcm) of gas, while the blocks of the Daniel West license would hold a prospective reservoir of 7.8 tcf (220 bcm) of gas, which would represent total reserves of more than 250 bcm of gas. The estimate for the Og prospect is with a 38-43% probability of finding gas, while in the Daniel West license the probability ranges from 24% to 57% depending on the prospect.
The eastern Mediterranean basin that includes Israel, Egypt and Cyprus is estimated to hold between 10,000 and 15,000 bcm of gas. The Israeli offshore is dominated by a partnership of Noble Energy and Delek Group, which controls the Leviathan and Tamar fields, and is progressively opening to competition, under the pressure from regulators.