Antitrust uncertainty deters oil companies from coming to Israel

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Israel Oil and Gas Exploration Industries chairman Uri Aldubi says 100 companies contacted refused to come to Israel.

“We contacted over 100 companies in the natural gas sector in an attempt to find large and small operators at all levels of experience and professionalism,” asserts Aldubi in a letter sent last week to Ministry of National Infrastructure, Energy, and Water Resources.

“Efforts were made to enhance the attractiveness, but were unsuccessful. Those who agreed to set foot in Israel either leave, or have one foot out of the game, such as AGR and Edison,” Aldubi wrote.

Aldubi sent the letter on account of the regulatory uncertainty in Israel in recent years, which reached a peak with Antitrust Authority director general Prof. David Gilo’s decision to alter the structure of the natural gas industry in Israel. Aldubi adds that the requirements for new operators have been made more stringent in recent years in order to improve their professionalism, while operators have been banned from holding multiple important licenses.

“Doing business in Israel has thereby become nonviable for the few operators who considered coming here,” he complained. Finally, in his letter, Aldubi accused the regulators in Israel, including the Antitrust Authority director general and the Ministries of Finance and National Infrastructure, Energy, and Water Resources, of responsibility for the companies “halting their development processes for lack of an alternative, and many workers who could have been employed have been fired or not hired.”

Source: cyprusgasnews.com