NBL Noble Energy Inc

TEL AVIV—Israel's economy minister resigned on Sunday, allowing the government to move ahead with stalled plans to develop two offshore gas fields after nearly a year of political wrangling.

Prime Minister Benjamin Netanyahu said he would take over Aryeh Deri's portfolio to push through a framework to develop the gas fields after the plan was ruled anticompetitive by the country's regulator last year.

"Today we are taking a major step toward advancing the supply of gas in the state of Israel," Mr. Netanyahu said. "Natural gas will be the No. 1 growth engine in Israel in the coming years."

Mr. Deri had refused to exercise his power to waive last December's antitrust decision, which ruled that the plans for the two gas fields would lead to an effective monopoly for the two main stakeholders, U.S.-based Noble Energy Inc. and its Israeli partner, Delek Group Ltd.

The Tamar and Leviathan fields were discovered in 2009 and 2010, respectively, and are worth an estimated $25 billion in potential gas sales, according to analysts at U.K.-based Barclays Bank.

Mr. Netanyahu said the gas from the two fields would lower energy costs for Israelis. The development plans would inject billions of dollars into the country's economy via the creation of new industries that support the energy sector, he said.

"It also gives energy independence to Israel," said Mr. Netanyahu. "We will not be dependent on foreign energy sources—this is very important for the state of Israel."

Mr. Deri, who is the leader of the right-leaning, religious Shas party, had decided against waiving the antitrust ruling unless the Israeli parliament voted on the framework for development on the two fields. The parliament, known as the Knesset, voted the deal through in September.

The Israeli prime minister holds a coalition government with a one-seat majority of 61 out of 120 lawmakers in the Israeli parliament. His Likud Party holds 30 seats and is a minority in its own coalition.

In addition to his role as prime minister, Mr. Netanyahu now holds the positions of foreign minister and economy minister in his government.

Write to Rory Jones at rory.jones@wsj.com

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(END) Dow Jones Newswires

November 01, 2015 20:05 ET (01:05 GMT)

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