The Natural Resources Administration of the Ministry of Energy and Infrastructure today published its revenue report for the first half of 2024. Revenue from natural gas, minerals and raw materials in the first half of 2024 amounted to NIS 1.175 billion, an increase of 12% from NIS 1.044 billion in the first half of 2023. Most of the revenue – NIS 1.133 billion – was from natural gas revenue, an increase of 12.5% over the same period last year.
The increase in revenues was a result of the increase in the amount of natural gas production for export, the increase in the amount of hydrocarbon liquids production, as well as the increase in the dollar exchange rate. Total revenues from export revenues amounted to about 687 million shekels (60.66% of revenues).
The largest amount of revenue from Leviathan was
The state’s revenues from natural gas consist of three components: First, the royalty fee at a rate of approximately 12.5%, determined in accordance with the Petroleum Law from the moment production begins at the reservoir. The collection and monitoring of the fee is managed by the Ministry’s Fees Division, and the funds are transferred directly to the state treasury. Second, the corporate tax (income tax) at a rate of 23% of the profit, determined in accordance with the Income Tax Law and administered by the Tax Authority – is also transferred directly to the state treasury. Third, the tax on profits from natural resources (Sheshinsky tax), at a rate of 20% -46.8%, after a return on investment of 150%. This is a special tax created after the Sheshinsky Committee report, and is administered by the Tax Authority and transferred to the Sovereign Wealth Fund managed by the Bank of Israel.
The figures show, as expected, that the largest revenues came from the Leviathan field: about NIS 503 million from production of about 5.47 billion cubic meters – an increase of 4.3% over the same period last year. Most of the revenues from Leviathan came from exports (about 88.76%). Meanwhile, the total revenues collected from the Tamar field amounted to about NIS 382 million from production of about 4.9 billion cubic meters – an increase of only 0.6% over the same period last year.
Revenues from the Karish field amounted to about NIS 248 million, from the production of about 2.77 billion cubic meters of natural gas and 1.821 million barrels of hydrocarbon liquids, an increase of about 70% over revenues in the same period last year, due to increased production.
This article was published in Globes, Israeli Business News – en.globes.co.il – on September 15, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.