Bloomberg News

Delek Drilling, Avner Decline on Gas Probe: Tel Aviv Mover

June 14, 2012

Delek Drilling-LP (DEDRL) fell to the lowest level in more than seven months as contracts covering the Tamar natural gas field are examined by Israel’s regulators.

Delek Drilling, a partner in the Tamar field, dropped 3.8 percent to 11.43 shekels, the lowest level since Nov. 1, at the 4:30 p.m. close in Tel Aviv. Avner Oil Exploration LLP (AVNRL), another partner, fell 3.8 percent to 2.03 shekels, and Isramco Negev 2 LP decreased 3.3 percent to 0.469 shekel. The benchmark TA-25 index declined 1.2 percent.

The price Israel Electric Corp. will be paying for Tamar gas could be 40 percent cheaper, TheMarker reported today, citing a senior figure at the Ministry of Energy and Water Resources. The Antitrust Authority is studying the Tamar contracts with Israel Electric and other independent electricity producers, Delek Drilling said in May.

“The uncertainty about the Tamar contract with Israel Electric is weighing on the stocks,” said Steven Shein, a trader at Psagot Investment House Ltd. in Tel Aviv.

Israel’s Public Utilities Authority last month asked for Israel Electric’s contract with the Tamar partner to be re- opened to adjust costs, saying it could lead to excessive costs to consumers.

An e-mail seeking comment sent to the office of the spokesman at the Ministry of Energy and Water Resources wasn’t immediately answered.

Delek Group Ltd. (DLEKG), which has stakes in both Delek Drilling and Avner, fell 2.1 percent to 598 shekels.

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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