In 2024, record revenues of 2.37 billion NIS of royalties of natural gas and minerals were recorded, more than 8.2 % for 2023, when total revenues reached 2.19 billion New, according to the annual report of extensions, accounting and economy in the Department of Natural Resources in the Ministry of Energy and Dumping.
Since the beginning of natural gas production in Israel, the state has gained approximately 30 billion NIS. From this, 14.9 billion NIS is the royalties that the Ministry of Energy and Infrastructure gathered, while the rest is a tax on profit from natural resources and companies tax collected by the Israeli Tax Authority.
Local gas partnerships pay several types of taxes to the country on their revenues and gas production. The first is royalties at a rate of 12.5 % under the Petroleum Law from the moment when production begins from the tank. A royalties gathering and monitoring is the responsibility of the royalties department in the Ministry of Energy and Infrastructure, and money is transferred directly to the Ministry of Governmental Treasury. The second is the corporate tax at a rate of 23 % of profits under the income tax law, and it is managed by the Israel Tax Authority. This is also transferred directly to the Treasury. The third is a profit tax from natural resources (known as “Sheshinski”) at a rate of 20-46.8 %, after 150 % returned to investment. This is a special tax group after the report of the committee chaired by Professor Eitan Shishensky, and is managed by the Israel Tax Authority. Revenue from this tax is transferred to the sovereign wealth fund, the “Israel Citizen Fund”, which is run by the Bank of Israel.
The report of the Ministry of Energy and Infrastructure for 2024 covers a range of royalties that go to the Ministry of Governmental Treasury (and not to the citizens of the Israel Fund). Three additional important statistics appear: an increase of 13.4 % in natural gas exports to Egypt and Jordan in 2024; 8.3 % in total natural gas production compared to the previous year; And an increase in royalties of natural gas and oil by 10.88 % compared to the previous year.
NIS 1.37B from Tamar and Levaythan
The largest part of the revenues in 2024 of natural gas royalties, which amounted to 2.31 billion New, and 10.88 % more than 2023. of this, 1.37 billion shekels (59.2 %) of natural gas export from Tamar, Levithan and oil export from the Caricus. The increase, according to the report, was due to an increase in natural gas production from tanks in Israel, and an increase in the amounts of natural gas sold for export.
Most natural gas royalties, NIS 1022 billion, come from the Leviathan reservoir, to the production of 11.33 BCM of natural gas, which is compared to 995 million NIS to the production of 11.19 BCM in 2023 – an increase of 2.7 % in revenues of Leviathan rights. From this, royalties on exported gas amounted to 894 million NA, or 87.5 % of the total.
The royalties from the Tamar reservoir reached 779 million NIS, on the production of 10.09 BCM and 455,000 barrels of associated capacitors. This compares with the revenues of 695 million NIS to 9.17 BCM of gas and 421,000 barrels of condensate in 2023 – an increase of about 12 %.
Total revenue from royalties from the KARISH 507 million NIS reservoir, of which 343 million NIS (67.7 %) originated from natural gas production for the local economy, while the rest originated from oil exports.
He decreased in phosphate prices hitting revenues
The report also shows that there is a decrease in a group of royalties of minerals. Last year, the revenue of metal royalties reached 41.2 million shekels (30 million shekels in the current revenue of phosphate royalties; and 11.1 million New from scrutiny differences for previous years). This compares with 44.2 million NIS in the previous year. Current revenues of metal royalties decreased due to the low price of phosphates, which led to a decrease in the value of raw crude.
In 2024, the application for a natural phosphate exploration license was held in the areas of mining specified in the Oron fields, adornment, routine and hatior. The Ministry of Energy and Infrastructure collected 16 million NIS from the winner. In addition, 5.1 million NIS revenues were registered in fees of various licensing grants.
“Wonderful news for the Israeli economy”
In light of the numbers, the Minister of Energy and Infrastructure, Eli Cohen, said, “The state's income from royalties on natural resources, which is still rising and providing more than 2.37 billion New annually, is great news of the Israeli economy, which will directly affect the citizens of Israel,” said Elie Cohen, Minister of Energy and Infrastructure, in light of the numbers.
“The total state income of natural gas (royalties and the imposition of corporate and tax taxes) will reach about 5 billion NIS this year, as the total state of the state of natural gas will reach about 10 billion New annually.
“The significant increase in natural gas exports to Egypt and Jordan shows that the natural gas industry constitutes an important strategic advantage for Israel and contributes to enhancing regional and security stability and enhancing our international position.
“A clear instance: to exploit natural gas reserves in Israel. We want to see more companies here next year, more competition, more reserves for the local market, and more possibilities for exporting natural gas.”
It was published by Globes, Israel Business News – En.globes.co.il – on March 5, 2025.
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