Nochi Dankner quits gas exploration

Clal Industries and Investments transfer its 7.8% rights in Med Ashdod and Med Yavne natural gas concessions to its partner Isramco.

IDB Holding Corp. (TASE:IDBH) subsidiary Clal Industries and Investments (TASE:CII) is quitting the gas exploration business, after several years. Clal Industries will transfer its 7.8% rights in gas exploration partnerships Med Ashdod and Med Yavne to Israel National Oil Company (INOC), affiliated with Isramco (Nasdaq:ISRL; TASE:ISRA.L), the leading partner.

The Med Ashdod and Med Yavne drillings for natural gas have failed to find any commercially significant quantities of natural gas, despite millions of dollars invested in drilling by the partners. The concessions are offshore from the center of the country.

The parties agreed that Clal Industries would receive financial compensation for the rights if natural gas is discovered at the concessions. The percentage of royalties accruing to Clal Industries under the agreement was not disclosed.

Published by Globes [online] - www.globes.co.il - on January 27, 2004

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