Israeli Gas Group May Seek Arbitration in Row with Regulator

The antitrust authority, an independent regulator of market competition, will next hold a hearing with the companies and it could be weeks before it makes a final decision.

Tadmor said he hoped a solution could be reached.

Underscoring the importance of the matter, Israeli Prime Minister Benjamin Netanyahu instructed his top economic adviser to oversee efforts to find a compromise, which analysts say may have already stained Israel's reputation with foreign investors.

The idea is to find a balance that will allow timely production of natural gas while supplying it to the public at competitive prices, a source in Netanyahu's office said.

The drama began on Sunday when executives from Delek and Noble Energy, the operator for both fields, were summoned for a surprise meeting with antitrust commissioner David Gilo.

Gilo had previously agreed Noble and Delek could control the fields as long as they sold two smaller, recently discovered ones. But in recent months, Gilo said, it became clear that arrangement was not sufficient and he might have to declare the companies a monopoly.

The Noble executives took a hard line and told Gilo they would not accept the decision, Tadmor said.


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WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Johnny Smith  |  December 25, 2014
Sounds like the Israelis are trying to seize drilling rights from these companies because they wanted the wealth, after someone else has taken the gamble of exploration.
MikeM  |  December 24, 2014
What do I think? I think Israel just joined Venezuela and Russia in the forced expropriation of assets. Zero respect for law, zero respect for the sanctity of contracts.


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