Yitzhak Tshuva is in talks with former Supervisor of Banks Roni Hizkiyahu for a "key senior position" position at Delek Group Ltd. (TASE: DLEKG). Sources inform ''Globes'' that Tshuva and Hizkiyahu held several meetings in recent weeks to reach a deal on Hizkiyahu's employment by the company.
Hizkiyahu was not available for comment.
Hizkiyahu is expected to handle Delek Group's energy operations, including oil and gas exploration, and the drilling of wells at Tamar and Leviathan, as well as the transportation network, future gas exports from reservoirs that have been discovered, and working with regulators, the legislature, and the Ministry of Finance and the Ministry of National Infrastructures. A source at Delek told "Globes" that, at Tshuva's request, Hizkiyahu met Delek Energy Systems Ltd. (TASE: DEOL) CEO Gideon Tadmor to reach agreement on the division of responsibilities between them.
Hizkiyahu - as an experienced banker who specialized in financing for projects -is also due to handle the financial closing for energy projects: drilling, transportation, and exports. Last week, UBS estimated the cost of Leviathan's development, including infrastructures and a production facility, at $14 billion. This figure does not take the costs of an export network into account.
A key subject that Hizkiyahu can be expected to handle at Delek Group is regulation and the company's interface with the government. Tshuva and the government have been in confrontation in the past year over taxation on gas, the Sheshinski committee, and the price of natural gas sold by Yam Tethys to Israel Electric Corporation (IEC) (TASE: ELEC.B22). Delek's current relations with the regulator are thought to be problematic and there is distrust between the parties. Hizkiyahu, who enjoyr a high reputation and is considered acceptable in Jerusalem and a person of integrity, will have to reestablish trust.
Hizkiyahu, 51, with a degree in industrial engineering and management, is a veteran banker with 28 years experience, mostly at Bank Hapoalim (TASE: POLI). In the early 2000s, as CEO of Maritime Bank of Israel, he handled its merger with Bank Hapoalim. In 2004, he was appointed corporate banking division head at Israel Discount Bank (TASE: DSCT), and he was Supervisor of Banks in 2007-10. He handled the job successfully, winning considerable praise.
Published by Globes [online], Israel business news - www.globes-online.com - on June 6, 2011
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