About two years after the declaration by the Israeli Antitrust Authority’s General Director, according to which the Delek Group and Noble Energy are operating within a restrictive arrangement that damages the market terms, it appears that the parties are close to reaching a settlement agreement with the Israeli Antitrust Authority. The declaration of a restrictive arrangement is a result of a deal the parties engaged in to cooperate in developing the reserve and marketing the gas that is likely to be found therein, without requesting an exemption from a declaration of a restrictive arrangement.
Lior Pick, Advocate and CPA
Significant attempts to locate oil have been made in the State of Israel over the years, since the days of the British Mandate, to no avail.
After Israel was established, the Oil Law was enacted in 1952 and several oil search companies and governmental institutions to support this activity were established, first and foremost the Geophysical Institution that performs magnometric and seismic surveys; and the Geological Institute that provides laboratory services.
In light of the great development in explorations for gas and oil in Israel in recent years, the Ministry of Energy and Water is working to increase and tighten regulation and enforcement in the area. The draft of the initial instructions out of a many overall instructions that will lead to increased regulation was published to receive the public’s approach by the Ministry of Energy and Water on October 29th, 2012.
On October 24th, 2012, the Ministry of Energy and Water published a notice regarding the decision by the inter-ministerial prices committee’s decision to recommend that the Minister of Energy and the Minister of Finance apply regulation of the gas market at the level of reporting the profitability and prices of the gas partnerships.