16 Feb, 2017 7:06
Royalties from the Tamar reservoir rose 7%, despite the fall in the price of natural gas.
Natural gas royalties from the Tamar reservoir totaled NIS 819 million in 2016 (Note: €1=3,93 NIS, $1=3,70 NIS), accounting for most of the royalties from natural resources in that year. 2016 natural resources royalties totaled NIS 854 million, up 8.5%, compared with NIS 788 million in 2015. Additional natural gas royalties came from the Yam Tethys (NIS 1.8 million), Meged (NIS 4.7 million), Heletz (NIS 313,000), and Tamrur Cliff (NIS 11,000) gas fields.
According to the Ministry of National Infrastructure, Energy, and Water Resources, royalties from Tamar grew 7%, despite the fall in the price of natural gas. Fees from various projects totaled NIS 5 million.
Royalties from minerals rose from NIS 11.9 million in 2015 to NIS 23.5 million in 2016, a 98% increase. The Sheshinski 2 Committee recommendation for an increase in the royalty rate on minerals from 2% to 5%, which took effect in 2016, accounted for the increase.
"Globes" reported yesterday that establishment of the sovereign wealth fund for managing the revenue from the excess profits tax recommended by the Sheshinski Committee would be postponed from 2019 to 2020, due to slower than planned development of the natural gas sector. The fund will begin operating when at least NIS 1 billion has been accumulated from the excess profits tax. The gas companies will begin paying the tax after they have earned 150-230% on their investments.
Published by Globes [online], Israel Business News on February 16, 2017
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