As the future of the Leviathan gas reservoir becomes more and more uncertain, experts fear foreign investors are becoming increasingly hesitant to direct funds into Israel’s hydrocarbon industry.
Israel Antitrust Authority commissioner David Gilo announced last Thursday that a proposed consent decree regarding the entry of Delek Group and Noble Energy into Leviathan would not be submitted to the Antitrust Tribunal for approval as had been agreed upon earlier this year.
By backpedaling on the previous agreement, the government may cause undue delays in the development of the country’s gas basins and deter future investments, industry sources say.
“Some of the investors are shocked by the decision,” Eddy Cukierman, founder and managing partner of Catalyst Investments and chairman of Cukierman & Co. Investment House Ltd., told The Jerusalem Post on Sunday.
Should Gilo ultimately decide to force the companies to sell their assets, it would “become ridiculous for an international investor to look at Israel as a serious place to invest in,” he said. Continue reading…