Delek subsidiaries contest offshore Israel gas payments

Delek Group has issued details of a claim filed by its subsidiaries Delek Drilling and Avner Oil Exploration against the State of Israel for the return of overpayments of royalties.

Offshore staff

TEL AVIV, Israel – Delek Group has issued details of a claim filed by its subsidiaries Delek Drilling and Avner Oil Exploration against the State of Israel for the return of overpayments of royalties.

This concerns the commercial arrangements for operation and production from theoffshore Yam Thetis and Tamar projects. Both parties claim an overpayment of around $15 million related to revenues from the supply of gas from their share of the Tamar project under the Yam Thetis agreements.

They argue that the government is collecting royalties that are greater than the amounts they are receiving for the sale of the produced gas.

In an unrelated development, Israel’s Petroleum Commissioner of Energy and Water Resources has extended the validity of theHannah/351 license, where the same subsidiaries are partners, until June 14. The extension is to allow completion of a review of the data on a potential discovery within the license area.

03/16/2015

More in Regional Reports