Sign up now to receive our regular news briefs.

Oil Discovered in Israel’s Yam 3 Offshore Field, Could Generate $11 Billion

September 9, 2013 9:44 pm 6 comments

Oil barrels, with an international price of above $100 each, makes what's under water at the Yam 3 offshore field worth some $11 billion. Photo: WikiCommons.

Oil barrels, with an international price of above $100 each, means what's underwater at the Yam 3 offshore field could be worth some $11 billion, $3 billion for owner group Shemen. Photo: WikiCommons.

Shemen Oil and Gas Resources Ltd. (TASE: SOG) has discovered oil at Israel’s Yam 3 well, off the coast of Ashdod. The field is estimated to be worth up to $3 billion after development costs of $160 million, Israel’s Globes business daily reported on Sunday.

Shemen said signs of oil were found at the site, 19 kilometers from Ashdod, at a depth of 5,175 meters below sea level, and that the quality of the oil was high. The net thickness of the target strata is 68 meters, which, multiplied by the license area of 25 square kilometres, gives Israeli energy analysts an idea of how much oil awaits Shemen under the sea, Globes said.

A resources report by Netherland Sewell & Associates Ltd. estimated the field holds 128 million barrels of recoverable oil, with 110 million barrels of oil and 18 million barrels of oil equivalent of natural gas. With international oil prices above $100 per barrel, the reservoir could generate $11 billion, with between $2 billion and $3 billion value for the field’s developers, Globes said.

Clal Finance energy analyst Yaron Zar told Globes that the next data point investors are waiting to learn is what kind of bedrock is being found in the area. At the much larger Israeli natural gas fields of Tamar, Leviathan, and Karish, the rock is highly porous sandstone, but the strata rock at Yam 3 may be chalk, with a far lower porosity. The softer the rock, the better for drilling and extracting, Globes said.

The oil discovery was powerful news for Shemen’s share price, which jumped by 15% before closing the trading session in Tel Aviv with a 3% gain on the initial news. The proof of oil is also seen as benefiting Israel’s exploration sector, which has fallen from grace after several high-profile “copy cat” natural gas wells announced in the wake of Israel’s Leviathan mega deal proved to be duds.

Israel’s Myra and Sarah fields, both “dry holes,” were estimated to contain 6.5 trillion cubic feet of gas and cost $165 million to explore; the Ishai license, another dud, was estimated to have 2.4 TCF of gas and cost $103 million to explore; while the Shimshon license, yielded just 0.6 TCF of gas, a quarter of the estimated 2.4 TCF, and cost $80 million.

6 Comments

  • Of Asher he said, “More blessed than sons is Asher; May he be favored by his brothers, And may he dip his foot in oil.” Deuteronomy 33:24

    and now, nanodots!

    the fig tree has more than started to send forth new growth. God Bless Israel.

  • is it ashers’ feet which are bathed in oil? and for such a time as this? shalom Israel shalom

  • Elliot J. Stamler

    We Jews have all heard the old joke: if only Moses had turned right instead of left the promised land would have been in Arabia. Well, thousands of years later, looks like Moses did make the correct turn.

  • This isn’t thrilling, it is nauseating. Western Civilization’s limited accumulation of Wisdom has been centered in the Old Testament and prior to scientific archaeology that only began in the 19th century it is all the knowledge of past mistakes that we had. It is ironic to me that these finds are not that far from the exhausted mines of Solomon and the Egyptian Pharoahs. Like the oilfields of Texas, they will only be a temporary fix, and since Fukushima it is obvious that “peacefl” uses of atomic energy are turning out to be even more lethal than those that are meant to blow up cities and kill large numbers of people. Aside from sun, wind, and tides, your only real source of sustainable energy and if you aren’t running a generator connected to your bicycle to read this, you might as well drop dead and count your entire lifetime as having been a complete waste of time.

    • Hahaha good one Tom. Pedal harder cause you’ll need to generate more power for a/c … or is it 30 years of cooling … Just end it right now. He that keeps Israel neither slumbers
      nor sleeps … Yeshayah 41 these are idols

  • Wow, for crying out loud, Israel has got oil and gas coming out of their mouth, ears and eyes. It’s absolutely miraculous!!! I’m just astounded and I believe there is going to be much more they will find. To Jesus Christ be all the Glory!!!

Leave a Reply

Please note: comments may be published in the Algemeiner print edition. Comments written in all caps will be deleted.


Current day month ye@r *

More...

  • Arts and Culture Middle East Larry King Asks Saudi Arabian Fan If Taking Pictures With Jews Is Permitted

    Larry King Asks Saudi Arabian Fan If Taking Pictures With Jews Is Permitted

    Jewish former CNN host Larry King asked a Saudi Arabian fan if taking pictures with Jews is allowed in his country, before agreeing to pose for a photo with the man, The New York Times reported on Wednesday. The world-famous interviewer was leaving the Ritz Carlton hotel in Washington, D.C. with a New York Times reporter when a “dark-skinned man” approached and asked to take a picture with him, according to the publication. Whereupon, King asked the fan where he was from. When the man said Saudi […]

    Read more →
  • Europe Sports Britain’s Lord Sugar Says Synagogues Will Be Empty With Yom Kippur Matchup of Jewish-Supported Soccer Teams

    Britain’s Lord Sugar Says Synagogues Will Be Empty With Yom Kippur Matchup of Jewish-Supported Soccer Teams

    British-Jewish business tycoon Lord Alan Sugar joked on Wednesday that London synagogues will likely be empty during Yom Kippur with congregants fleeing to watch the match-up of two leading English soccer teams known for having hordes of Jewish fans. “Spurs V Arsenal cup game drawn on most important Jewish festival,” Lord Sugar pointed out on Twitter. “Both teams have loads of Jewish fans. Conclusion Synagogues will be empty.” North London rivals Tottenham Hotspur and Arsenal FC will go head-to-head in the Capital One Cup third-round […]

    Read more →
  • Arts and Culture US & Canada Jewish Men Pass Jimmy Kimmel Social Experiment, Rescuing ‘Spongebob’ in Distress (VIDEO)

    Jewish Men Pass Jimmy Kimmel Social Experiment, Rescuing ‘Spongebob’ in Distress (VIDEO)

    Two Jewish men were the only unwitting participants in a social experiment conducted by Jimmy Kimmel, for his popular TV show. As part of a candid-camera-like sketch featured Monday night on Jimmy Kimmel Live, the host devised different street scenes to observe human behavior — in particular, to see how long it would take people walking down California’s bustling Hollywood Boulevard to notice and interact with others in distress. One scene involved a man in a Spongebob Squarepants costume who had “fallen down” on the sidewalk and needed help […]

    Read more →
  • Education US & Canada International Jewish Organization Blasts Israeli-Born Star Natalie Portman for Comments on Holocaust Education

    International Jewish Organization Blasts Israeli-Born Star Natalie Portman for Comments on Holocaust Education

    A major Jewish organization rebuked actress Natalie Portman on Monday for saying in a recent interview that Jews put too much emphasis on teaching about the Holocaust relative to other genocides. The Israeli-born movie star told the U.K.’s Independent that the Jewish community needs to examine how much focus it puts on Holocaust education over other issues. She said she was shocked when she learned that a genocide was taking place in Rwanda while she was in school learning only about the horrors of the […]

    Read more →
  • Arts and Culture Israel Book Draws Parallels Between Holocaust and Palestinian Nakba, Sparks Outrage

    Book Draws Parallels Between Holocaust and Palestinian Nakba, Sparks Outrage

    JNS.org – A new book that draws parallels between the Holocaust and the Palestinian Nakba (the Arabic term for the displacement of Palestinian refugees during Israel’s War of Independence) has sparked outrage ahead of an official book launch, to be hosted by the Van Leer Jerusalem Institute on Sept. 7. The Zionist organization Im Tirtzu wrote a letter to the institute demanding that it cancel an event it planned in honor of the book’s authors, under the title The Holocaust and […]

    Read more →
  • Education US & Canada Natalie Portman Says Holocaust Education Shouldn’t be Used for ‘Fearmongering’

    Natalie Portman Says Holocaust Education Shouldn’t be Used for ‘Fearmongering’

    Famed actress Natalie Portman warned on Friday against the use of Holocaust education to evoke fear and paranoia. In an interview with the U.K. Independent she added that the trauma should make Jews more empathetic to others who have also experienced hatred. “Sometimes it can be subverted to fearmongering and like ‘Another Holocaust is going to happen,’” the Israeli-American star said. “We need to, of course, be aware that hatred exists, antisemitism exists against all sorts of people, not in the same way. I […]

    Read more →
  • Book Reviews Commentary A Righteous Gentile Navigates the Sharkpool of Washington’s Middle East Correspondents (REVIEW)

    A Righteous Gentile Navigates the Sharkpool of Washington’s Middle East Correspondents (REVIEW)

    The Tribalist, by Louis Marano, is ostensibly a work of fiction but at its core a kind of love song by a gentile journalist for the State of Israel, and especially its secular Zionist core. (Because of the relentless attacks by left-wing polemicists on Israel’s allegedly “messianic” fringe, it’s often forgotten that most of Israel’s founders and all its leaders have been secular Zionists.) The author, the product of an Italian-American family in Buffalo, served two tours of duty in […]

    Read more →
  • Food Jewish Identity Rugelach Roundtable: Does Beloved Pastry Need Dairy to Taste Good?

    Rugelach Roundtable: Does Beloved Pastry Need Dairy to Taste Good?

    JNS.org – Rugelach (singular: rugala) are a beloved traditional Jewish pastry, with a quirky history to boot, but they often present a kosher conundrum. Though parve rugelach are often a preferred dessert after a meat meal for those observing kosher laws (which stipulate a waiting period between eating meat and dairy), some of today’s most popular rugelach are known for their dairy fillings. Pastry chef Paula Shoyer—author of the books “The Kosher Baker: Over 160 Dairy-free Recipes from Traditional to Trendy” and […]

    Read more →