Gas royalty revenue down slightly in first half 2017

Tamar
Tamar

Gas production from the Tamar field rose 7% but the appreciation of the shekel meant revenue fell 0.3%, the Energy Ministry reports.

Israeli government revenues from natural gas, oil and quarrying royalties totaled NIS 403 million in the first half of 2017, the Ministry of National Infrastructures, Energy and Water Resources reports. Most of these revenues, NIS 391 million derives from natural gas royalties and almost all that amount, NIS 390 million was from the offshore Tamar gas field. This sum reflects the 4.8 billion cubic meters (BCM) of natural gas that was produced in the first half of 2017 compared with NIS 4.5 BCM in the first half of 2016.

Although gas production rose 7% in the first half of 2017, compared with the corresponding quarter of 2016, revenues from the Tamar field fell slightly by 0.3% due to a 9% appreciation of the shekel against the dollar.

In addition to gas and oil royalties, new legislation meant that the Natural Resources Administration received NIS 5 million from various fees and operations as well as NIS 7 million from quarrying.

Minister of Energy Yuval Steinitz said, "This significantly strengthens the Israeli economy due to the increase in natural gas production from the Tamar field. Revenue is expected to rise even more in the coming years due to development of the Leviathan, Karish and Tanin fields."

Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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