Psagot Investment House Ltd. today responded to a report by "Globes" that the government will decide on Tzemach Committee's recommendations on natural gas exports within two weeks, saying that Leviathan partner Ratio Oil Exploration (1992) LP (TASE:RATI.L) is traded at a discount of 15-17%, compared with a 5%discount for its partners in the gas field, Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L). Analyst Noam Pinko says that approval of the recommendations should close the discount in the companies' share prices, especially for Ratio, which is a pure-play company in Leviathan.
Yesterday, "Globes" reported that Minister Energy and Water Resources Silvan Shalom said, "We will submit a proposal that will be right economically and take into account future generations, and the need to bring more investors, and which will be right socially."
Pinko believes that Shalom was implying that the proposal will be based on the Tzemach Committee recommendations, possibly with changes in the amount of gas to be reserved for domestic use.
The Tzemach Committee recommends reserving enough gas to meet 25 years of demand by the Israeli market, estimating the quantity needed at 450 billion cubic meters (BCM). Israel currently has 800 BCM in proven gas reserves, mostly at Tamar and Leviathan.
Published by Globes [online], Israel business news - www.globes-online.com - on May 1, 2013
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