An increase in the state’s revenues from the “whale” gas reservoir in 2021 led to a new record in the collection of royalties from the state’s natural resources – according to a report published today (Monday) by the Ministry of Energy. On the other hand, the royalties that flowed into the state coffers from the Tamar reservoir fell to a low point this year.
Last year, revenues of NIS 1.27 billion were recorded, from natural gas, oil and minerals royalties and fees – an increase of 15.3 compared to revenues in 2020. The Ministry of Energy estimates that the amount will continue to increase in 2022 and reach NIS 1.36 billion.
The main source of reward revenue is the “Whale” reservoir, from which about 10.81 BCM of natural gas was extracted in the past year. This is a significant increase compared to revenues in 2020, which amounted to NIS 499 million, from a production of only 7.32 BCM.
Total revenues from the “Levitan” reservoir originating from exports increased by 64.8% in 2021 and amounted to NIS 450 million, compared with NIS 273 million in 2020. Revenues from the “Tamar” reservoir last year amounted to NIS 522 million, from a production of about 8.69 BCM .
However, royalties from the Tamar gas reservoir decreased in 2021 to NIS 522 million, compared with NIS 592 million – a negative record for a full year since gas production from it began during 2013.
In addition to natural gas royalties, record revenues from mineral royalties in the amount of NIS 36.5 million were recorded in 2021, of which NIS 23.7 million were due to royalty differences after an audit by the Ministry of Energy’s Royalties, Accounting and Economics Division for 2016-2019. In addition, revenues of NIS 6.2 million were recorded from natural gas, oil and minerals.
Energy Minister Karin Elharar noted that “the royalty report shows, once again, the importance of natural gas for the Israeli economy, also in the economic aspect. Revenues are growing, as is the profit of the Israeli public. About a third of revenues are based on exports, “Our neighbors, and in the coming year, in accordance with the agreement I signed, we will increase the amount of natural gas for Egypt, while maintaining the amount needed for the local economy. I will continue to strengthen this strategic-economic connection, which yields us a growing return.”