‘New gas draft is threat to Antitrust Authority’

Antitrust Authority director David Gilo resigns, citing an intra-governmental disagreement on dismantling the natural gas monopoly. Gilo tells recently appointed Economy Minister Aryeh Deri that he intends to step down by August.

Gilo announces his decision as the new government backtracks on an outline drafted jointly by the Antitrust Authority and the government that was presented in February, before the election, on dismantling the gas monopoly. The government intends instead to follow an outline that would leave US company Noble Energy, operator of the Tamar and Leviathan offshore gas rigs, in a position of control in the energy market.

The government’s revised draft would reduce Noble’s holdings in the Tamar reservoir from 36 percent to 24% within six years, and remove Noble’s veto rights in the partnership. But the American firm would still have the privilege of marketing gas from both reservoirs, Tamar and Leviathan.

“My decision stems from several considerations, mostly the knowledge that the government and specifically the Prime Minister’s Office, the Finance Ministry and the Energy Ministry will do all in their power to promote the new draft on natural gas – a draft which I am certain will not bring competitiveness to this important market. This all may even include harm to the independence of the Antitrust Authority, or harm to the authority’s capability of taking unilateral actions,” Gilo writes in his letter to Deri.

“All along the way, I believed it would be right to reach a solution on competitiveness with the gas companies without resorting to the court system, because the gas companies threatened to cease development of the reservoirs if I turn to the courts,” he continues.

“Over the past few weeks, I announced to the gas partnership and government ministries that I cannot be part of the recent draft, since I am convinced, as I said, that it will not bring competitiveness in the natural gas market,” Gilo writes in his letter.