Israel gas royalties up 40% in 2014

Tamar

Royalties rose to NIS 744 million last year and will rise to NIS 820 million this year, the Ministry of Energy reports.

State royalties from the natural gas and oil reservoirs have set a record. The Ministry of National Infrastructure, Energy, and Water Resources today reported that royalties had zoomed 39% to NIS 744 million in 2014, in accordance with the ministry's previous forecasts.

The ministry believes that royalties revenues will rise to NIS 820 this year, and climb to NIS 3.2-3.4 billion by 2019, providing that the plans for expanding the Tamar reservoir and developing the Leviathan, Karish, and Tanin natural gas reservoirs are carried out without any delay caused by the recent events in the energy sector.

Most of the revenue so far has come from the Tamar and Yam Tethys reservoirs, with the remainder from oil production. State phosphate quarrying royalties totaled NIS 11 million in 2014, and state revenues from various fees and operations totaled NIS 6 million.

"Enriching the state treasury through royalties helps reduce the cost of living. The contribution of natural gas to the Israeli economy is extremely significant, and we regard promoting development of the gas reservoirs as very important to the welfare of the Israeli consumer," said Minister of National Infrastructure, Energy, and Water Resources Silvan Shalom.

Royalties from the Tamar reservoir soared 53% to NIS 425 million in the second half of 2014, compared with the first half of the year, and 43%, compared with the second half of 2013, due to increased production of gas from the reservoir, the rise in the shekel-dollar exchange rate, and an additional NIS 55 million resulting from royalties differences.

Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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