Shalom: Israel to set up gas profit fund like Norway

Energy and Water Minister Silvan Shalom says Israel to allocate 3% of gas profits to fund that state can use for national needs.

Silvan Shalom at Tamar natural gas rig 370 (photo credit: Moshe Binyamin)
Silvan Shalom at Tamar natural gas rig 370
(photo credit: Moshe Binyamin)
Israel will establish a natural gas profit fund based on Norway’s model, Energy and Water Minister Silvan Shalom announced on Thursday after a meeting with the Norwegian energy and petroleum minister.
Shalom and Energy and Water Ministry director-general Shaul Zemach met with Norway’s Ola Borten Moe and senior staff from his ministry to discuss the composition of the Norwegian gas profit fund, Shalom’s office said.
The model entails allocating 3 percent of the country’s gas profits to a fund that the state can use for various national needs. Considered the largest in the world, the Norwegian fund contains about $700 billion, and all investments of the fund are foreign-based, Shalom’s office said.
Moe advised Shalom how to efficiently manage the security of such a fund, as well as the employee training and other requirements its establishment entailed.
In response, Shalom said Israel would employ the Norwegian schema.
“I am pleased about the establishment of the Israeli fund and that it is being created on the basis of the Norwegian model,” Shalom said. “If we achieve the same success in 20 years, the citizens of Israel will benefit.”
Moe expressed a great interest in cooperating with Israel in the future on hi-tech industry issues and on sharing knowledge, Shalom’s office said.