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Steinitz. 'The citizens of Israel also need to enjoy the natural treasures'
Photo: Ofer Amram

Steinitz: Israel has right to raise take on gas finds

Finance minister says take from natural gas, oil discoveries will balance needs of energy companies and public

Israel has the right to raise the government take from natural gas and oil discoveries, Finance Minister Yuval Steinitz said on Tuesday, adding it will balance the needs of energy companies and the public.

 

There has been much debate over how much the government will benefit from the potential cash windfall from the recent discovery of natural gas deposits in Israeli waters, and many companies are worried about a large cut in future profits.

 

Steinitz had formed a committee to decide whether there is room to raise the level of royalties and taxation that for decades has remained low compared with those levied by other developed countries with oil and gas.

 

"If the country didn't pay attention and behaved irresponsibly for 60 years and didn't deal with this issue, then it's my job as finance minister to take care of it," Steinitz said at an energy conference in Tel Aviv.

"I accept that whoever invested and explored and knew and took chances needs to enjoy a reasonable and worthy profit ... but the citizens of Israel also need to enjoy the natural treasures and discoveries of gas and oil," he said.

 

Companies that have already made huge investments are crying foul and are calling it a potential game-changer.

 

US-based Noble Energy, which leads the group that made the largest natural gas find in 2009 at the Tamar offshore site, has even threatened to take Israel to the International Court of Justice should it break any agreements.

 

Steinitz said that many developed countries, including the United States, have raised their government take in recent years and that he did not believe any court in the world would say Israel could not to do what others have done.

 

Steinitz said a final decision was due after he gets a recommendation from the finance ministry committee, which will present an intermediate report in the middle of November.

 

 


פרסום ראשון: 10.20.10, 12:57
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