Israel’s state coffers to get NIS 300billion from oil and gas

“Leviathan will put NIS 300b into Israel state coffers”

Gideon Tadmor

But Delek Drilling Chairman Gideon Tadmor says more backing from the Israeli government is needed.

“If in the past three drilling rigs were operating in Israel, today there is only one. The Leviathan field is expected to put NIS 300 billion into the state coffers but we need the backing from Jerusalem to do it,” said Gideon Tadmor, chairman of Delek Group Ltd. (TASE: DLEKG) unit energy exploration units Delek Drilling Limited Partnership (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L) at the Energy and Business Conference in Tel Aviv today.

He added, “In 2012 the total investment in Israel’s energy sector was $2.5 billion while in 2014 it was just $200 million. It’s about time to say enough of the populism which controls the public dialogue.”

Tadmor was referring to populist comments by Labor MKs Shelly Yechimovich and Economics Committee Chairman Avishay Braverman. He also remarked on the IHS CERA report commissioned by the Norwegian government, which was published in “Globes” and which ranked Israel in 48th place in the world on its risk index for oil and gas activity, and 61st on its general attractiveness. The report also said that Israel is not honoring its oil and gas commitments and agreements, and sanctity of contract in Israel was rated worse than in Indonesia, Angola, Mozambique, and other developing countries.

Tadmor said, “Regional cooperation which is being formed in the field of energy is expected to make a major commitment to the economy and strengthen cooperation and stability in the region. We are talking about a far reaching contribution to the State of Israel’s geopolitical status. For decades Israel was an isolated island without energy security. Today Israel is on its way to become an energy anchor in the region.”

Tadmor concluded by saying that, “The State of Israel has received a one-time opportunity to create socio-economic and geopolitical change and transform Israel into a stabilizing factor in the region. In order to realize the dream, what is now required is to take the right decisions and implement them swiftly.”

Noble Energy Inc. (NYSE: NBL) Israel Country Manager Binyamin (Bini) Zomer said, “The gas industry has already created savings and revenue benefits worth more than NIS 50 billion for the Israeli economy. From its natural gas resources Israel earns 10 times more than the developers.”

Written by Hedy Cohen, Nov 2014