Sheshinski says Egyptian gas halt proves him right

"There is nothing in my recommendations that will harm Tamar's cash flow. Is the fact that we need Yitzhak Tshuva more now a reason to delay them?"

Prof. Eytan Sheshinski told “IDF Radio" (Galei Zahal) that the halt in deliveries of natural gas from Egypt only reinforces the recommendations of his committee to increase the government's take from Israel's oil and gas fields to 52-62% from the current 33%. He said that the cash flow from Tamar will only increase as a result of the recent events in Egypt.

"All the recent developments merely reinforce our recommendations," he said. "The halt in gas deliveries from Egypt means that Tamar will supply more gas to Israel Electric Corporation, so Tamar's profit margin calculations will only be better."

Minister of National Infrastructures Uzi Landau told “IDF Radio" that there was no need to rush into the Sheshinski recommendations, given the concerns about delays in deliveries of Israeli gas.

Asked to respond, Sheshinski said, "I don’t understand this logic, because if the recommendations are not enacted now, then we're moving this in an unclear way. The tax won't come into effect for Tamar's first ten years in any case, so why are people whining?"

Sheshinski added, "There is nothing in my recommendations that will harm Tamar's cash flow. Is the fact that we need Yitzhak Tshuva more now a reason to delay the recommendations?"

Noble Energy Inc. (NYSE: NBL) owns 36% of Tamar, Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG) subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 15.625%, Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) owns 28.7%, and Alon Natural Gas Exploration Ltd. (TASE: ALGS) owns 4%. Deliveries from the gas field are scheduled to begin in 2013.

Published by Globes [online], Israel business news - www.globes-online.com - on March 6, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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