Category Archives: Offshore

HOUSTON, Feb. 13, 2017 /PRNewswire/ --Diamond Offshore Drilling, Inc. (NYSE: DO) today announced it has revised its previously-announced earnings for the quarter and year ended December 31, 2016.

As it was completing its year-end financial reporting process, the Company discovered that its liability for uncertain tax positions in certain foreign jurisdictions did not appropriately reflect changes in foreign exchange rates. The majority of the impact was related to the devaluation of the Egyptian Pound, primarily in the fourth quarter of 2016. After the local tax liabilities were re-valued consistent with exchange rates at December 31, 2016:

The adjustments did not affect any of the other previously-announced operating results. Copies of the fully-adjusted financial statements are enclosed in this press release.

ABOUT DIAMOND OFFSHORE

Diamond Offshore is a leader in offshore drilling, providing contract drilling services to the energy industry around the globe. Additional information and access to the Company's SEC filings are available at http://www.diamondoffshore.com. Diamond Offshore is owned 53% by Loews Corporation (NYSE: L).

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data)

Three Months Ended December 31,

Twelve Months Ended December 31,

2016

2015

2016

2015

Revenues:

Contract drilling

$ 384,646

$ 544,129

$ 1,525,214

$ 2,360,184

Revenues related to reimbursable expenses

7,228

11,434

75,128

59,209

Total revenues

391,874

555,563

1,600,342

2,419,393

Operating expenses:

Contract drilling, excluding depreciation

174,342

256,393

772,173

1,227,864

Reimbursable expenses

6,775

11,146

58,058

58,050

Depreciation

86,031

114,448

381,760

493,162

General and administrative

14,786

15,574

63,560

66,462

Impairment of assets

--

499,367

678,145

860,441

Restructuring and separation costs

--

1,043

--

9,778

Bad debt recovery

(265)

--

(265)

--

Loss (gain) on disposition of assets

6,060

(2,309)

3,795

(2,290)

Total operating expenses

287,729

895,662

1,957,226

2,713,467

Operating income (loss)

104,145

(340,099)

(356,884)

(294,074)

Other income (expense):

Interest income

176

1,526

768

3,322

Interest expense

(21,230)

(23,134)

(89,934)

(93,934)

Foreign currency transaction (loss) gain

(3,689)

1,511

(11,522)

2,465

Other, net

472

171

(10,727)

873

Follow this link:

Diamond Offshore Announces Tax Expense Adjustment to Fourth Quarter and Full Year 2016 Earnings - PR Newswire (press release)

Last week Diamond Offshore (NYSE:DO) delivered Q4 revenue of $391.9 million and eps of $0.40. The company beat on revenue by over $32 million. The stock is up about 2% since the report. I had the following takeaways:

Revenue Fell Y/Y, But Bounced Sequentially.

Diamond's total revenue fell 29% Y/Y. Ultra-deepwater floaters still make up 60% of total contract revenue. This segment fell 41% Y/Y as drilling for ultra-deepwater remains prohibitively expensive. Deepwater was off 30%, while Mid-water nearly doubled.

On a positive note, revenue was up about 13% on a sequential basis; Ultra-deepwater and Mid-water led the way with gains of 7% and 91%, respectively. The OPEC supply cut has sent oil prices in the mid-$50 range, and breathed new life into certain segments of the offshore market. The higher prices have also enticed North American shale drillers to increase supply. I expect oil prices to range from $50 - $60, which could help the Mid-water segment to remain a catalyst for several quarters.

Market For Offshore Drilling Remains Oversupplied

The general market for offshore contractors remains oversupplied. Industry participants have suffered from revenue declines due to waning demand for contract drilling services. Revenue earning days and average daily revenue have both been in decline. Diamond's biggest selling point is that it did not succumb to unbridled optimism that befell Seadrill (NYSE:SDRL) and others; it did not take on excessive debt or commit to capital expenditures that only made financial sense with oil prices in the $75 - $100 range.

On the earnings call management was keen to point out that it does not have any assets delayed in shipyards yet to be delivered or any sixth-generation assets uncontracted. The company has also been able to sustain its EBITDA margins during the downturn. Q4 EBITDA margin was 50%; this was higher than the 46% margin achieved in the year earlier period, despite lower revenue. These factors should allow the company to at least tread water if oil prices remain range bound.

Pristine Balance Sheet

Energy-related names seem to be bifurcated between those with strong balance sheets and those without them. Diamond's balance sheet is pristine. At Q4 it had working capital of $165 million. With $220 million in annual free cash flow, the company's liquidity should grow over time. As importantly, Diamond's $2.1 billion debt load is only 2.7x run-rate EBITDA.

That is in stark contrast to the balance sheets of competitors like Seadrill whose debt is over 5x EBITDA; Seadrill also has upside down working capital, and $1 billion in near term principal payments it might not be able to meet. Diamond's low debt load is probably why its liquidity and cash flow is so strong. If it had billions in near term principal payments then its cash flow and business prospects would be a lot more dismal. There is a scenario where Seadrill or another competitor could fold and potentially remove some supply from the market.

Conclusion

DO trades at 5.5x run-rate EBITDA. The low multiple is most likely due the dismal prospects of the offshore market with oil prices sub-$60. I believe oil prices will remain range bound due to land drillers increasing supply at higher prices. If financial markets endure a major correction or if a major competitor goes belly-up, removing supply from the offshore market, DO could become a buy. For now I rate the stock a hold.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Visit link:

Diamond Offshore Is A Hold - Seeking Alpha

TORONTO -- Six years after Ontario abruptly imposed a moratorium on offshore wind projects, citing the need for more research, the government is signalling it will likely continue for several more years, even with all of its studies in hand.

The moratorium has so far put the Liberal government on the hook for at least $28 million, and it still faces a trial next year on another $500-million lawsuit over the February 2011 decision.

Both Windstream Energy and Trillium Power Wind had wind turbine projects planned for Lake Ontario in the eastern part of the province when the government brought down the moratorium -- in Trillium's case, just minutes before its financing was set to close.

Windstream took its complaint to a NAFTA tribunal, which partially ruled in the company's favour, awarding it $25 million in damages for unfair and inequitable treatment as well as $3 million in legal fees.

Ontario's decision was "at least in part" driven by a genuine concern about a lack of scientific research, but was also influenced by public opposition to offshore wind and how it could affect the Liberals in the upcoming 2011 election, the tribunal found.

"The government on the whole did relatively little to address the scientific uncertainty surrounding offshore wind that it had relied upon as the main publicly cited reason for the moratorium," the tribunal ruled. "Indeed, many of the research plans did not go forward at all, including some for lack of funding, and at the hearing counsel for the respondent confirmed that Ontario did not plan to conduct any further studies."

Five government-commissioned studies have been completed since 2011 on impacts on fish, other environmental impacts, sound and decommissioning requirements.

The studies largely found that while there were still many unknowns about offshore wind in freshwater environments, impacts were likely to be minimal. At least one concluded it was doable.

"If appropriate precautionary measures are taken to avoid or mitigate the impacts of potential harmful or disturbing activities, and implementation strategies are adapted to reflect an ever-growing knowledge base and accommodate the best available science-based options for mitigation, offshore wind power generation within the Great Lakes has the potential to be implemented with minimal impacts on the aquatic ecosystem and in an environmentally sustainable manner," concluded one aquatic research study.

The last two outstanding studies were made public in December, but now the government says it needs more research -- only, it hasn't commissioned any.

"Ontario will continue to follow the impact of North America's first offshore wind pilot project in Lake Erie -- a project authorized by the State of Ohio," the Ministry of the Environment said in a statement.

"Doing so will allow us to have a better grasp of any potential environmental and health challenges posed by freshwater offshore wind developments. The moratorium will not be lifted until research findings are understood and concerns surrounding offshore wind projects are addressed."

The Lake Erie project is slated to begin construction in the spring of 2018.

The Windstream contract in Ontario was signed at a time when the government was shutting down coal-fired electricity generation and looking for green sources of power. Now, the Liberal government is under fire for its green energy program, which is blamed in part for high electricity rates. It recently cancelled plans to sign contracts for up to 1,000 megawatts of power from solar, wind and other renewable energy sources.

But Windstream is still hoping their contract is honoured.

As for Trillium, its $500-million lawsuit for misfeasance in public office is set to go to trial one week after the June 7, 2018 election. Trillium doesn't buy the need for more research as an explanation for the moratorium, said its lawyer.

"These are all really, as far as we're concerned, simply excuses for not wanting to proceed with offshore wind," said Morris Cooper. "(This government) has no focus other than to win the next election."

The Liberal government is also under criminal investigation stemming from Trillium's claim. The company alleged in the lawsuit that government officials destroyed documents after the company sued over the government's cancellation of a Lake Ontario wind project and the provincial police are investigating.

None of Trillium's allegations has been proven in court.

In its statement of defence, the government says it was a coincidence that the moratorium and cancellations were issued just before Trillium's financing was set to close.

See the original post here:

Ontario signals offshore wind moratorium will continue for years - CP24 Toronto's Breaking News

FEBRUARY 12, 2017 Trinidad Offshore Fabricators Unlimited (TOFCO) recently completed work for the Juniper offshore gas platform topsides at its facility in La Brea, Trinidad. The project is the largest offshore structure ever fabricated in Trinidad and Tobago.

Juniper is a Normally Unmanned Installation (NUI) measuring 145 feet to the top of the helideck and weighing approximately 5,200 short tons. It was recently installed 50 miles off the southeast coast of Trinidad at a water depth of 360 feet. An anticipated production capacity of 590 million standard cubic feet per day will flow through the Mahogany B offshore hub.

Projects of this size and complexity pose unique challenges. However, TOFCO not only delivered the historic project safely and within budget, but it was also fully completed and pre-commissioned prior to the scheduled sail-away date.

TOFCO says that, even with the aggressive schedule, quality was not sacrificed and global benchmarks were exceeded by working more than 2 million man hours on Juniper without a lost-time incident.

Over the past decade, TOFCO has installed management systems and processes to maximize efficiency and ensure quality control for all projects. As a result, the company has successfully fabricated ten major offshore structures, essentially establishing the offshore fabrication industry in Trinidad and Tobago and developing a base of skilled workers.

TOFCO's employee mentoring model has empowered its workers by providing internationally accepted skill set training, education and career development.

"The construction of the Juniper topside by TOFCO is as much a victory for Trinidad and Tobago and the community of LaBrea as it is for the companies involved in the project," said TOFCO General Manager Javed Mohammed. "We look forward to taking this success into securing future projects."

Fabrication of the Juniper topsides was significant for the Trinidad and Tobago economy because it provided local contracting and employment opportunities in a wide range of crafts and disciplines, helping to strengthen and stimulate the domestic oil and gas services supply chain. When Juniper begins production, it is expected to help close shortfalls experienced by the downstream and LNG processing plants.

TOFCO (Trinidad Offshore Fabricators Unlimited) was established in 2004 as a joint venture between Houma, LA, headquartered Chet Morrison Contractors and Trinidad's Weldfab, Ltd. Its 37-acre waterfront facility located in southwestern Trinidad is the country's leading supplier of offshore fabrication services.

TOFCO provides fabrication, installation, scaffolding, logistics, electrical and instrumentation, as well as on- and offshore labor services, brownfield and greenfield work. The facility has produced 10 major offshore fabrication structures, including the topsides deck for Juniper, the largest offshore platform in Trinidad and Tobago's history.

View post:

TOFCO completes milestone Trinidad and Tobago offshore structure - Marine Log

European companies including Siemens and ORE Catapult have launched a project to improve the productivity of technicians performing service activities on offshore wind farms.

The Safety and Productivity of Offshore Wind Technician Transit project aims to widen the weather window for crew transfer vessels to increase turbine availability.

It will combine measurements both on board and the surrounding environment with psychological and physiological methods to monitor the well-being of technicians as they transit in different sea conditions.

This will result in a tool that will support the vessel launching authority to make the decision to launch, to not launch, or to launch but only with certain control measures.

This innovation will lead to a reduction in the levelised cost of electricity of about 0.7%, the partners estimate.

They comprise BMO Offshore, Energy research Centre of the Netherlands, Specialist Marine Consultants, University of Hull and MARIN, as well as ORE Catapult and Siemens.

The program has received funding from the European Unions Horizon 2020 research and innovation programme and from the Dutch Ministry of Economic Affairs.

Image: reNEWS

Excerpt from:

Offshore crew eyes weather gains - reNews

Text: Levon Sevunts

Responding to criticism of the move from Darrel Nasogaluak, the mayor of Tuktoyaktuk, a remote community on the shores of the Beaufort Sea, during a town hall meeting in Yellowknife on Friday, Trudeau said one of his governments fundamental responsibilities was to protect communities and the environment from a potential environmental disaster.

There has been a lot of research, a lot of people over a long time have tried to look at ways to exploit and explore Arctic Ocean resources and quite frankly it has never been determined that it can be done safely, Trudeausaid. The cataclysmic impact of an oil spill in the High Arctic Ocean is unimaginable. Thats why we made the decision that there needed to be moratorium on Arctic oil and gas exploration.

David Miller, president and CEO of World Wildlife Fund Canada, praised Trudeaus comments as positive and very consistent with the science.

Its quite clear from our work at WWF that risk to nature of drilling is far too great to be worth taking, Miller said in a telephone interview.

Unhappy territorial leaders

However, while environmental activists have applauded the ban, announced by Trudeau in conjunction with outgoing President Barak Obama on December 20, 2016, the Liberal leader has come under fire from local government and some Indigenous leaders in Nunavut and the Northwest Territories, who have denounced the lack of consultations with them prior to the announcement.

Our people have been working with the industry over 50 years on and off, weve grown skills, weve got good employment, our businesses have grown, the region has grown, Nasogaluak said, addressing Trudeau. To lose an opportunity on oil and gas for our people is very upsetting. One elder told me, We cant just up and move to where the jobs are.

Trudeau acknowledged that the Liberal government has closed one door of potential economic opportunity but said the various levels of government need to work together to ensure that we are opening many more doors of economic opportunity.

Moratorium to be reviewed

Yet he did not close the door to future oil and gas exploration completely.

We make decisions based on science, Trudeau said. Thats why were working with the North, with communities, with the premier with the scientists to establish the framework so that we can evaluate every five years the science around the modern technologies, around spill response, around operating frameworks to make sure that the moratorium is still relevant.

The ban means Arctic ecosystems will be protected by default and it would be up to the oil industry to demonstrate that they can operate safely, which we are a long way from being able to do right now, Trudeau said.

Paul Barnes, manager of Atlantic Canada and Arctic for the Canadian Association of Petroleum Producers, said Canadas offshore industry has been operating safely for more than 50 years.

The oil and natural gas industry has a long history of meeting the challenges of Arctic exploration with technological advances, science-based research, applications of lessons learned from operating experience, traditional knowledge and adaption of best practices from elsewhere around the world, Barnes said in an emailed statement. Our members have been working to world-class standards in the offshore and have brought tremendous economic benefits to Northern and Atlantic Canada.

Canadas energy regulator, the National Energy Board, has strict filing requirements for offshore drilling in the Canadian Arctic and it the oil industrybelieves that itcan be done safely, Barnes said.

Weve done oil spill trajectory modeling and any deep-sea well puts the ecological health of huge swathes of the Arctic at risk, Miller said. And that is an economic challenge, not just an environmental challenge because it puts the jobs and livelihoods of people whose livelihood depends on sustainable exploitation of things like fish very much at risk.

And while the science on the dangers of offshore drilling wont change, the political climate could, Miller warned.

Im less concerned with Mr. Trudeau changing his position than the fact the moratorium isnt permanent, Miller said. Because Mr. Trudeaus successor could, perhaps, change that position sometime in the future whether it be in five, ten, fifteen or twenty years.

Hundreds of people had packed into the gym at the Yellowknife Multiplex to take part in the town hall, first town hall event north of the 60thparallel.

Trudeau answered questions on building roads to access northern mining resources and reduce the current reliance on the seasonal ice roads, as well as affordable housing and updating federal legislation to better protect Canadas rivers and lakes.

The Liberal leader was also grilled for abandoning plans to reform Canadas first-past-the-post electoral system, a key electoral promise during the 2015 campaign.

On Thursday, Trudeau was in Iqaluit the capital of Canadas Arctic territory of Nunavut, where he signed a declaration with Inuit leaders, setting apromised Inuit-to-Crown partnershipin motion.

This was Trudeaus first visit to the northern territories since his 2015 election victory.

This story is posted on Independent Barents Observer as part ofEye on the Arctic, a collaborative partnership between public and private circumpolar media organizations.

Go here to see the original:

Trudeau: Arctic offshore drilling too dangerous - The Independent Barents Observer

What happened

Oil prices continued to meander higher this week, ending up less than 1% to around $54 per barrel. That marked crude's highest finish in the past five weeks, fueled by reports that oil demand was coming in stronger than expected while OPEC members were mostly complying with their pledge to cut output.

Unfortunately, higher oil prices could not lift most oil stocks out of the doldrums this week. Lackluster earnings and a continued bleak outlook for the offshoredrilling market sank several oil stocks. Leading the underperformers, according to data fromS&P Global Market Intelligence, wereHornbeck Offshore Services (NYSE: HOS), Atwood Oceanics (NYSE: ATW), Bristow Group (NYSE: BRS), and Matrix Service Company (NASDAQ: MTRX):

BRS Price data by YCharts.

Continue Reading Below

ADVERTISEMENT

Matrix Service Company led this week's losers after reporting lackluster results for its fiscal second quarter. The construction and engineering company missed on both the top and bottom line, due primarily to lower volumes in its oil gas and chemicals segment. Because of that, the company pulled back the reins on its full-year guidance. Needless to say, the combination of an earnings miss and a downward revision to guidance did not sit well with Matrix Service's investors, who sold off the stock.

Atwood Oceanics' stock also plunged after releasing earnings. The offshore driller's revenue continued to slide, while earnings missed expectations because the company could not push costs down as much as expected. Making matters worse, Atwood Oceanics' outlook was not very appealing, with the company saying that it could be another year before offshore drilling activities start improving. Meanwhile, rival Diamond Offshore Drilling (NYSE: DO), painted an even bleaker picture of the offshore market this week. Diamond Offshore said that it has "yet to see a floor in the declining demand for deepwater assets." Worse yet, Diamond Offshore said it did not anticipate a recovery until 2019 or 2020. The bleak offshore drilling outlook caused an analyst from Evercore to suggest that Atwood might need to issue equity to stay afloat given its shrinking backlog and hefty debt load.

Image source: Getty Images.

That gloomy outlook for the offshore drilling sector seemed to weigh on service companies Hornbeck Offshore Services and Bristow Group because it implies that they will not see an increase in demand for their services. In Bristow's case, last week's sell-off erased its post-earnings pop from the previous week after it reported better-than-expected results and secured new financing to help it stay afloat. That's because it's possible that conditions could still get worse before they start getting better.

While green shootsare popping up across the onshore oil and gas marketplace, the offshore market is quite a different story. Drilling activities continue to slow down, which is putting further pressure on offshore drillers and service providers. There's no bottom in sight, which is why investors are better off turning their attention to companies that have exposure to the improving onshore market for the time being.

10 stocks we like better than Atwood Oceanics When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Atwood Oceanics wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of February 6, 2017

Matt DiLallo has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Atwood Oceanics. The Motley Fool has a disclosure policy.

Here is the original post:

Oil and Gas Stock Roundup: The Outlook for Offshore Drilling Continues to Dim - Fox Business

Forbes

Cost Impact of Immigration and Visa Reform to US Customers Using Offshore Services Forbes 2000x-18 Most US organizations have substantially used offshore service providers in IT and business process outsourcing (BPO) to drive cost reduction. But there is currently a great deal of discussion in Congress and the Trump Administration as well ...

Read the original post:

Cost Impact of Immigration and Visa Reform to US Customers Using Offshore Services - Forbes

What happened

Shares of a number of offshore drilling stocks are up big on Friday following the announcement of Q4 earnings fromNoble Corporation Ordinary Shares (NYSE: NE). Noble's shares are leading the way today, up over 12% as of 2:50 p.m. EST, butSeadrill Ltd(NYSE: SDRL) stock is also up more than 10%, whileENSCO PLC(NYSE: ESV) andDiamond Offshore Drilling Inc(NYSE: DO) are both up around 5%:

NE Price data by YCharts.

Today's jump for these stocks is largely tied to Noble's earnings release. The company reported an adjusted loss of $0.15 per share. And while a loss isn't exactly great, Wall Street analysts were expecting a much bigger $0.22-per-share loss from the company this quarter. On a GAAP basis, Noble's loss was much bigger, as the company took a $1.3 billion impairment against five of its drilling rigs.

Continue Reading Below

ADVERTISEMENT

From an operations perspective, Noble has made a lot of progress. The company generated positive operating cash flows in 2016, and the impairments above are a reminder that the global drilling vessel fleet still has a lot of rationalization to go through before reaching parity with existing demand for work.

There's still less offshore activity, and that's not changing overnight. Image source: Getty Images.

From a capital perspective, Noble remains on sound footing. The company issued $1 billion in new debt in the fourth quarter, due in 2024, and used $762 million of the proceeds to pay off debt due in 2020, 2021, and 2022. At the quarter's end, Noble reported a cash balance of $726 million, $2.45 billion in undrawn credit capacity, and no major debt maturities within the next couple of years.

Noble's report comes on the back of a surprisingly good report from Diamond Offshore on Feb. 6. The company delivered a strong $0.53-per-share earnings profit. And while a one-time gain of $0.26 per share tied to a settlement over a contract dispute won't boost future quarters, Diamond still delivered a stronger result than many were expecting.

ENSCO is scheduled to hold its earnings call on Feb. 28, while Seadrill will likely report sometime in March. But investors probably shouldn't put too much stock in Noble's or Diamond Offshore's results when it comes to optimism for ENSCO or Seadrill.

If you're following offshore drillers, it's probably best to focus more on their balance sheets and less on GAAP profits and revenue at this stage. Look for the companies that are best-positioned to ride out the downturn, which could continue through 2017, and have the financial stability to make it to the recovery.

Noble, Diamond Offshore, and ENSCO are all in much better positions than Seadrill in that regard.Seadrill has nearly $5 billion in obligations due within 12 months, while the other three have less than $1.6 billion combined. The others also have a combination of cash and available credit liquidity to address their short-term obligations, while Seadrill has far more debt maturing in the next several months than it has the liquidity to deal with.

There is real opportunity in offshore drillers, but also very real risk of permanent losses. Make sure you balance the two, and understand the risks before investing in any of these companies. It's also important to acknowledge that it could take another year -- or more -- before the offshore market really starts recovering.

10 stocks we like better than Noble When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Noble wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of February 6, 2017

Jason Hall owns shares of Diamond Offshore Drilling, Ensco, Noble, and Seadrill. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Continued here:

These Offshore Drilling Stocks Are Up Big as Earnings Season Starts - Fox Business

Israel has extended the original deadlines for each step of its first offshore oil and gas bid round launched last November, Energy Minister Yuval Steiniz said on Thursday.

Under the original plan for re-opening Israels offshore to new oil and gas exploration, the country announced its first bid round for development of resources in its territorial waters. At the time, minister Steiniz quoted independent research as having estimated that there are additional resources in a range of 6.6 billion barrels of oil and 2,137 BCM of natural gas yet to be found offshore Israel. The ministry is auctioning off 24 exploration blocks of up to 400 square kilometers (154.4 square miles) each, and will award 3-year licenses, extendable by another 3 years under certain conditions. In order to keep a healthy competition, companies with significant holdings in active offshore leases in the area are not allowed to bid. That means that Israels Delek and U.S.-based Noble Energy which are developing the giant Leviathan natural gas field are not bidding.

The original timetable had stipulated that the deadline for submission of proposals would be April 21, 2017, with winners of the new blocks expected to be announced in July 2017.

However, under the revised timetable, the closing date for bid submission is July 10, 2017, and bid bonds are valid until March 1, 2018, which may mean that the awarding of the licenses may take place next year.

Related: U.S. Oil Rig Count Up On Rising Oil Prices

Dozens of companies have expressed interest in the bidding process, thus the extension to allow for more time to prepare for bids, Natural Gas World quoted Steiniz as saying at a roadshow in Tel Aviv.

In the eastern Mediterranean, other countries are also advancing bid rounds and licensing awards. Cyprus has recently awarded three offshore blocks one to Italys Eni, one to an Eni/Total partnership, and the other to ExxonMobil and Qatar Petroleum while Lebanon opened last month five offshore blocks up for bidding, re-launching the first licensing round after three years of political impasse.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Read more:

Israel Puts Off License Award In First Offshore Oil, Gas Bid Round - OilPrice.com