The Israeli cabinet has approved an agreement signed by the government with a consortium of the US-based Noble Energy and Israel's Delek Group, for the development of the Leviathan gas field in the eastern Mediterranean Sea.
The deal was signed last week allowing the two companies to retain their share in the field. Initially proposed in June, the deal is yet to secure parliamentary approval.
Noble and Derek will, however, require to sell their stake in the other field in Israel, Tamar, and allow the government to regulate gas price for six years.
Leviathan deal is facing opposition from certain quarters with fears about control over gas prices. In December last year, Israel’s antitrust regulator observed that the consortium would result in a monopoly. But this was overwritten by the government with strong support from Prime Minister Benjamin Netanyahu.
Netanyahu said recently: "The agreement will bring in hundreds of billions of shekels (tens of billions of dollars) to Israeli citizens over the coming years."
Currently, Israel depends on gas sourced from Tamar field to generate power.