Bloomberg News

Delek Falls as Regulator Asks for Changes to Tamar Gas Contract

May 22, 2012

Delek Drilling-LP (DEDRL), a partner in Israel’s Tamar natural gas field, dropped to the lowest in almost six months after the utilities regulator asked for a gas contract to be re-opened to adjust costs.

Delek Drilling fell 2.7 percent to 12.55 shekels, the lowest intraday level since Nov. 30, at 10:14 a.m. in Tel Aviv. Avner Oil Exploration LLP (AVNRL), another partner in the field, retreated 2.8 percent to 2.291 shekels, the lowest intraday level since Dec. 22. Isramco Negev 2 LP declined 2.3 percent to 0.508 shekels.

Israel’s Public Utilities Authority said Israel Electric Corp. and the Tamar gas field partners will have to reopen their contract to change costs, according to a statement published yesterday on the authority’s website. The contract gives the partners a monopoly over gas supply for several years and could lead to excessive costs to consumers, the authority said.

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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