Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L), a partner in the Tamar gas field with a 28.7% holding, today responded to yesterday's publication of the Sheshinski committee's interim recommendations. In a notice to the Tel Aviv Stock Exchange (TASE), the first such statement by an Israeli oil and gas exploration company, it warns that the recommendations as presented at the press conference, if accepted "are expected to greatly increase the tax burden on participation unit holders and adversely affect the partnership's business and operations."
Isramco added, "After the partnership receives that the committee's draft recommendations and reviews their ramifications, including on financing and development of the Tamar project on the basis of the original plan, it will consider its steps accordingly."
The Sheshinski committee yesterday released its iterim recommendations for raising taxes on current and new oil and gas fields. The oil and gas exploration companies will now have the opportunity to respond to the recommendations and submit their objections in six weeks. The Sheshinski committee is due to publish its final recommendations at the end of the year.
Isramco's share price fell 5.8% by midday on the TASE today to NIS 0.489, , on the largest turnover in morning trading, giving a market cap of NIS 5.88 billion. Its Israeli partners in the Tamar field, Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) fell 2.6% to NIS 2.33 and 2.5% to NIS 13.89, respectively.
Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2010
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