Noble Energy Indicates it Will Fight Gas Cartel Decision

Noble Energy chairman Charles Davidson: We will vigorously defend our rights relating to our assets.

Charles Davidson Noble Energy

 

In response to the decision by Prof. David Gilo, Director of the Israel Antitrust Authority, not to submit the consent decree embodying the compromise he had reached with Delek Group Ltd. (TASE: DLEKG) and Noble Energy, Inc. (NBL) allowing the two companies to continue owning the rights in both the major gas reserves in Israeli waters, Tamar and Leviathan, to the Antitrust Tribunal for final approval. In response, Noble Energy says it and its partners have requested a hearing on the topic with the Antitrust Authority, which it says it expects will occur in the next few weeks.

In March 2014, the partners and the Antitrust Authority reached agreement for the consent decree that included the divestiture of the Tanin and Karish gas fields. Noble Energy says that this agreement is a key component for the final investment decision on the Leviathan development.

Noble Energy chairman Charles Davidson said today, “The actions of the Antitrust Authority are another disturbing example of the uncertain regulatory environment in Israel. Specifically, this is a matter that we believed was resolved some time ago and follows on recent assurances from the Antitrust Authority that approval was forthcoming. We believe this is a harmful precedent for Israel to set and we will vigorously defend our rights relating to our assets.”

Noble Energy president and CEO David Stover added, “We are disappointed in this latest communication from the Antitrust Authority. Final resolution of this item, as well as a number of other regulatory matters, is required before we proceed with additional exploration or development investments in our Israel business.”

Published by Globes [online], Israel business news – www.globes-online.com

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