East Mediterranean E&P SummaryNet income from the sector for 2016 was NIS 413 million, an increase of 52% compared to a net income of NIS 272 million in 2015. The growth was mainly due to the increase in the quantities of natural gas, as well as condensate, sold from the Tamar project in 2016. The average natural gas price in Israel in 2016 amounted to USD $5.2/MMBtu.
Financial Highlights
- Following four years of successful on going production, the Tamar field reached peak production – natural gas sold was at a record of 9.4 BCM in 2016 (~0.9 Bcf/d);
- The E&P sector contributed a record NIS 413 million to the 2016 net income versus NIS 272 million in 2015 ;
- A Final Investment Decision (FID) for Phase 1A of the development plan for Leviathan was sanctioned by the partners at a capacity of 12 BCM per year (~1.2 Bcf/d);
- Delek Group advances its international strategy: makes an offer to purchase remaining share capital of Ithaca Energy;
- Completed sales of Karish and Tanin, generating net profit for the Group of NIS 253 million;
- Record net income amounting to NIS 625 million in 2016, compared with NIS 25 million in 2015;
- Dividend of NIS 200 million declared for the fourth quarter; a total of NIS 560 million distributed for 2016.
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