Q & A

​As specified in Section 6 of the CFB, questions which will be sent to the Ministry regarding the competitive process will be evaluated by a special committee and the responses to those questions are to be published on the OBR website.

Q & A - closed on May 15th

Question NumberDocument (CFB/Schedule)Item NumberQueryAnswer
​1CFB​6Clarifications for item 6- communicationsIt should be clarified that prior to purchasing the OBR 2016 documents, potential bidders may submit questions by email to dinal@energy.gov.il, not necessarily in the Questions Form included in Schedule 2. However, all of the provisions of Paragraph 6 (communications) will apply to those questions.
​2CFB​General1. Are companies that participate in the tender required to set up a legal entity in Israel? Are there any further requirements applicable to the participants (for example set up an Israeli company and operate in Israel for at least 5 years)?​​Please see Regulation 13 of Petroleum Regulations (Principles for Offshore Petroleum Exploration and Production) 5777-2016 
​3CFB​8.3please also confirm that the total cost of Data Package cost for Israel licensing round 2016 is US Dollars 50000 only or will there be any other taxes or charges etc.The fee for the Data Package for the 1st Israel OBR 2016 is US Dollars 50,000, as specified in paragraph 8 of the CFB in this link. No additional taxes or fees are required for the Data Package.
​4Schedule 1.5 – Confidentiality UndertakingClarification for Schedule 1.5 – Confidentiality Undertaking

It should be clarified that:

  1. Any information which is in possession of the Receiving Party, or the public at the time of disclosure to the Receiving Party, will not be considered as "Confidential Information".
  2.  Any information based on the Confidential Information which the Receiving Party developed independently, will not be considered as "Confidential Information".
  3. The expression "personnel who are involved in its activities related to the Permitted Purpose" (item 2.2) includes any consultant retained by the Receiving Party, any potential consortium member, any financial institution involved in funding the activities related to the Permitted Purpose, any employee of the receiving party and any of its affiliates, provided that they are involved in activities related to the Permitted Purpose and that such dissemination of the "Confidential Information" shall not be carried out on a commercial basis.

    The Receiving Party undertakes to take practical steps to impress upon those personnel who need to be given access to Confidential Information, the confidential nature thereof, and all other provisions of the Confidentiality Undertaking will also apply.
  4. The Obligation to Confidentiality and Non-Disclosure will be governed by and construed in accordance with the laws of the State of Israel and all disputes actions and other matters relating thereto will be determined in accordance with such law, and all disputes, actions and other matters relating to this Obligation to Confidentiality and Non-Disclosure shall be brought before the authorized courts in Jerusalem.

5. The Obligation to Confidentiality and Non-Disclosure shall not be restricted in time.

​5​​CFB​2​Request to postpone OBR
closing date

New bid round timeframe:

1. Deadline for submitting questions as per the OBR - 15/05/2017 (instead of 15/02/2017).

2. Deadline for turning to ​the Antitrust Authority regarding the Concentration Law - 15/05/2017 (instead of 1/03/2017).

3. Deadline for publishing answers to the questions, the final CFB and commencement of bidding - 29/05/2017 (instead of 1/03/2017).

4. Closing date for bidding - 10/07/2017 (instead of 21/04/2017).

5. License Guarantee should be valid until 1/03/2018 (instead of 1/01/2018).

​6​General​Please provide a map (preferably as

SHAPE FILE format) which includes all

existing seismic lines including 3D cubes

​Maps of 2D and 3D seismic coverage and data location in Shape Files (GIS-ESRI format)  are published in the OBR 2016 website at http://www.energy-sea.gov.il/English-Site/Pages/Data%20and%20Maps/Data-sources.aspx
​7​General 

We ask the Ministry an approval in

principle for use of old 2D lines and 3D

cubes (lines of spectrum, EMED,

Teledyne, Isramco and existing 3D cubes

etc).

​Authorization of a corporation as an operator is granted per petroleum right, as stated in Section 10 (c) of the Petroleum Regulations (Principles for Offshore Petroleum Exploration and Production) 5777-2016.
​8​General

Please provide additional information from BeiCip report, if any, beyond the information which provided with the Data Package.

​Highlights of BeiCip FranLab Final Report (2015) are included in the Data Package.

The full report includes confidential information, and therefore will not be provided.

​9​General​Upon awarding block(s) to a consortium, will they be eligible to receive the available 3D seismic datasets (pre & post) for their analysis? This is crucial to better propose a work plan and understand its costs.Upon awarding a block, the winner of the bid round may be eligible to receive the available 3D seismic datasets in this block for its analysis, subject to submitting an application to the Petroleum Commissioner.
​10CFBsection 9.10 (security guarantee)If a consortium bids without committing to a well do they need to post a security (sum of $5MM) in addition to the guarantee for the block ($2.5MM)- meaning is the total posted guarantee for a block without a drill commitment $7.5MM? If we bid on four adjacent blocks is the guarantee, then $9MM (2.5+0.5+0.5+0.5 + 5)? What is the difference between the security guarantee and the bid guarantee?​As stated in section 9.8. (a) of the CFB, here the proposed work programme does not include a commitment to drill an exploration well in the first 3-year period, the amount of the guarantee will be USD 2.5 million, and for 4 adjacent blocks without a commitment to drill an exploration well in the first 3-year period the amount of the guarantee will be USD 4 million (2.5+0.5+0.5+0.5)

As stated in section 9.10, the additional guarantee in the amount of USD 5 million will be submitted, for every license separately, with the application to drill an exploration well.  This guarantee will be required for drilling a well during the second 3-year period.

​11​​CFB11.12Please specify the required subjects and documents for the proposed operator's environmental due diligence reportThe proposed operator environmental due diligence report should include details and documents regarding the operator's experience in the environmental field, as detailed in the relevant sections of the Second Addendum of Petroleum Regulations (Principles for Offshore Petroleum Exploration and Production) 5777-2016 
​12CFB​11.12Please clarify if bidders need to submit the operator's environmental procedures Please refer to section 5 of the Second Addendum of Petroleum Regulations (Principles for Offshore Petroleum Exploration and Production) 5777-2016
​13Schedule 4 – prequalification of Bidders(ref. 4.1 & 4.2)In case a company is going to apply as operator in certain blocks and it is already pre-qualified as operator in Israel because of past and current activities in the country, which section/forms should they fill out? ​Authorization of a corporation as an operator is granted per petroleum right, as stated in Section 10 (c) of the Petroleum Regulations (Principles for Offshore Petroleum Exploration and Production) 5777-2016.
​14Schedule 7 – Work program It is mentioned that winning bidders are obligated to fulfill the work commitment presented. In case the winning bidders cannot fulfill the work program due to force majeure event, what’s happening?The Petroleum Law, 5712-1952 and its amendments do not include a reference to the concept of force majeure.  Please refer to section 51 of the Petroleum Law as per the Commissioner's discretion in such cases.
​15Chapter 9 – Payments, Guarantees and Bonus​On page 10 of the OBR2016, clause 9.10, when are we expected to pay a separate security of USD 5 million if we don't put a well as a firm commitment in the first three years?

Our understating is that a bank guarantee of 5 M$ is requested in the event that bidders do not commit to drill in the first 3 years, but when we will decide to enter in the second period.

Does it mean that (in case for example of 2 adjacent blocks with no firm wells in the first 3 years) the company has to guarantee 2.5 MM$ + 0.5 MM$ = 3.0 MM$?

​As stated in section 9.10, the additional guarantee in the amount of USD 5 million will be submitted, for every license separately, with the application to drill an exploration well.  This guarantee will be required for drilling a well during the second 3-year period.

 

In case of 2 adjacent blocks with no commitment for drilling in the first 3 years the company has to submit the following guarantee: 2.5 MM$ + 0.5 MM$ = 3.0 MM$.