Noble Energy CEO: Gas brings billions in taxes and savings

Charles Davidson attacked the Sheshinski committee recommendations by highlighting the benefits of Israel's gas discoveries.

"There's been a lot of talk lately in Israel about raising royalties and taxes on gas discoveries, but I want to remind you about the savings to the Israeli economy from the use of natural gas. Gas from the Mary B well already saves $1 billion a year. The state has made a $5 billion profit from the Mary B well since 2004. For every dollar in come to the developers, the state gets $2.60 in direct and indirect taxes, and other fees," said Noble Energy Inc. (NYSE: NBL) CEO Charles Davidson at the "Globes" Israel Business Conference 2010 in Tel Aviv this morning.

Noble Energy and Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG) own the Mary B well through Yam Tethys. They are also partners in the Tamar and Dalit gas discoveries and in the Leviathan prospects.

Davidson said that gas from Mary B had already resulted in a reduction in electricity tariffs, which benefits all Israeli citizens, irrespective of any hike in royalties and taxes on gas discoveries, as proposed by the Sheshinski committee.

Published by Globes [online], Israel business news - - on December 12, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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