Israeli Minister Resigns, Paving Way for Gas-Field Development
November 01 2015 - 8:20PM
Dow Jones News
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
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 01, 2015 20:05 ET (01:05 GMT)
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