No Progress in Meeting between Delek, Antitrust Commissioner

A meeting today between parties on the opposite side of a ruling on the Israel’s Leviathan gas project concluded without a satisfactory outcome.

Israel’s Antitrust Authority commissioner David Gilo meet with Yitzhak Tshuva, controlling shareholder in Delek Group Ltd., Delek Drilling chairman and Avner Oil and Gas LP CEO Gideon Tadmor and Delek Drilling CEO Yossi Abu.

The industry representatives were seeking clarification on ruling by Antitrust Authority commissioner David Gilo reversing the course of discussions of the past three years. Gilo said that he would not support an agreement that would allow Noble Energy and Delek Group to maintain their interests in offshore Leviathan and Tamar gas fields.

The move by the regulator may lead to the separation of the Leviathan and Tamar interests and force the sale of Leviathan to new participants.

Under the initial agreement, the Noble and Delek had agreed to dispose of the smaller Tanin and Karish gas deposits as part of satisfying the regulator’s requirements.

Prime Minister Benjamin Netanyahu has asked Prof. Eugene Kandel, chair of National Economic Council to find a solution to the problem of the ownership of the gas reserves.

Supporters of Gilo’s decision brought the matter to the floor of the Knesset on Monday afternoon.

Labor Party member Shelly Yachimovich spoke stridently in support of Gilo’s decision and against the consortium developing the offshore gas discoveries.

"Gilo will be subject to the constant attack of gas tycoons, and it is our duty to protect him," Yachimovich said. "He understood that he could not carry on his shoulders such a shame, scandal and theft of this magnitude."