"Without profits for investors, the Tamar field will not be developed," Minister of National Infrastructures Uzi Landau said at a press conference today about the Sheshinski committee's interim report. The committee proposes a progressive tax of 20-60% on oil and gas fields, which will be collected after revenue from a field exceeds 150% of the exploration and development costs.
Landau last week called on Prime Minister Benjamin Netanyahu to intervene on the matter of taxation of oil and gas reserves. At today's press conference, he declined to respond to direct questions about whether he supports the Sheshinski committee's interim recommendations, saying, "There are certain uncertainties in the report because the developers have not responded or seen the numbers. This draft will have to be adjusted to information that the developers and the local market will raise."
Landau added, "The general considerations of the decision-makers will have to take into account that those who come here will have to know that it's worthwhile. We haven’t seen the industry leaders come, and I'd like to see them here. There is already a financing solution. As far as we're concerned, the most important thing in the immediate term is to get the Tamar project up and running. Development of Tamar benefits the People of Israel and is a vital interest of the State of Israel, and I think that the developers feel the same way. We should all remember that if the investment is not worthwhile, there won't be investment, and there won't be Tamar."
Published by Globes [online], Israel business news - www.globes-online.com - on November 14, 2010
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