Energy Ministry: 25% increase in Tamar royalties in first half of 2015

Royalties generated from the Tamar gas reservoir showed a 25-percent increase in the first half of 2015, when compared to the same time period in the previous year, the National Infrastructure, Energy and Water Ministry announced on Tuesday.In total, royalties and fees from natural resources amounted to about NIS 359 million in the first half of 2015, of which NIS 351m. came from the gas and oil sector, the ministry's Natural Resources Administration said. Of the NIS 351m. accumulated in hydrocarbon royalties, about NIS 3m. came from oil extraction and NIS 348m. came from Tamar – a 25% jump in comparison to last year. Royalties from phosphate mining amounted to NIS 6.7m. – a 50% rise from the first half of 2014 – while various fees and other activities accounted for the remaining NIS 2m., according to the ministry. All in all, natural resource royalties showed an 18% increase from the first half of 2014 to 2015, with the NIS 359m. figure likely to climb to more than NIS 820m. for the entire 2015 year, the ministry said. In the natural gas sector, the ministry particularly attributed the rise to the production increase at the Tamar reservoir and the rise in the dollar exchange rate. "Natural gas, oil and mineral royalties are of great importance to the Israeli economy," said National Infrastructure, Energy and Water Minister Yuval Steinitz. "This data and assessments of future increases in royalties demonstrate the significance of continuing the development of Israel's natural gas sector and its contribution to the Israeli economy."