Record Income for Tamar Partnership

The Tamar partnership ended the first six months of 2016 with new production and financial records. It reported production of 4.5 bn m³, up 0.7 bn m³ or 18.4% from the year before and 214,000 barrels of condensate up 36,000 for the period. However, because of slightly lower average gas prices in the Israeli market, revenues and income gains lagged behind the production increase.

Total revenues for the first six months totalled $792mn, up $95mn or 13.6%. The average natural gas price was down 4% at $5.17/mn Btu. Revenues from gas were at $789mn and the rest, about $10mn, were from condensate. Helping was an instruction by the energy ministry to replace 15% of the coal used in power generation with gas. Operational expenses fell by 13.7% to $67mn or 8.4% of the revenues. Combined income before taxes for all four partners was $427mn, up $46mn from the first half of 2015.

The four partners of Tamar Partnership are Isramco (28.75%), Alon Gas Exploration (4%), Delek Drilling and Avner (15.625% each) and Noble Energy (36% and operatorship).

Tamar field, next to the giant Leviathan, still pending final investment decision

Noble registered revenues of $257mn during the first six months, an increase of 13.7%. Expenses fell 32% to $17mn and income before taxes stood at $155mn, up 29.2%.

Revenues and income all partners have increased by about the same percentages though income before taxes varied because of various financial arrangements.

Delek Drilling reported income before tax of $66mn up 18.6%, Avner reported income before tax of $61mn up 11.8%, Alon Gas Exploration reported income before tax of $11.5mn up 12.1% and Isramco reported income before tax of $138mn, up 18.5%.

During that period the government received $73mn in royalties, according to the companies filings to the Tel Aviv Stock Exchange by the Israeli partners, though Noble has not reported royalties payments separately, unlike its Israeli partners. Royalties were up 13.7% from the year before.

Ya'acov Zalel