Minister of Finance Yuval Steinitz has dismissed threats by Noble Energy Inc. (NYSE: NBL) on the subject of gas and oil royalties, and claims that there are enough examples around the world where countries have raised royalties and no international court can prevent it. Daily paper "Yediot Ahronot" based a report to this effect on talks that Steinitz reportedly had with businesspeople in New York last night.

Steinitz said, "All claims to the effect that Israel will have to stand trial in an international court if it changes its taxes and royalties are ridiculous. No court can say to Israel not to do what other democratic countries such as the US, Britain, and Norway have done. It is simply an attempt to mislead."

Speaking on behalf of Noble Energy, US Judge Abraham Sofaer told the Knesset Economic Affairs Committee on Tuesday that the US government might take Israel to the international court of justice in Europe if Israel decides to raise gas and oil royalties, because of an apparent violation of the covenant of friendship between the US and Israel.

Judge Sofaer told Globes TV, "It will be very difficult to ignore the negative fallout of raising royalties. Israel does not want to be Venezuela. Israel needs to maintain its credibility."

Published by Globes, Israel business news - www.globes-online.com - on October 7, 2010

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