According to the "Shinsky Commission" outline, and according to the Ministry of Energy's forecasts, revenues will jump to NIS 1.5 billion this year. • Revenue from Tamar since 2013 - more than NIS 5 billion. • In the past year, revenues from quarry royalties totaled NIS 10.7 million.

• Tamar gas rig // Photo: Albatross

Last year, the state recorded NIS 864 million in revenue from natural gas, oil and ore royalties - including fees related to these sources. In fact, most of the energy revenues - NIS 842 million - originate from revenues from the Tamar reservoir, even before the whale reservoir's natural gas sales began. These figures come from the revenue report released yesterday by the Royal Division of Accounting, Accounting and Economics at the Treasury's Department of Energy.

Revenues from the Tamar Database are in line with the royalty outline expected by the "Shinsky Commission". The commission has set a collection target of 60% of corporate profits, and according to reports, it predicted that Tamar would enter the profitability track within 3 years of starting operations, as it did. Due to the formula that cuts the tax from profits, as is the case with any tax system, each year the total tax collection is expected to increase .

This year, Tamar's profits are expected to be close to half a billion dollars, so that the partnership in the reservoir will for the first time reach the profitability threshold that will require them in the additional levy - "Shinsky levy", of $ 38 million. Thus, transfers tax payments are expected to reach $ 172 million. This is a little less than expected in the shekels, as the strengthening of the shekel in recent years was not expected.

Since production began in Tamar, many factors have questioned the implementation of the royalty outline. Part of the matter stems from the complexity of the calculation. Directly, revenue from the databases is divided into royalties, income tax and the additional levy. The Commission has deduced the tax rates into account throughout the life of the pool - about 30 years, and as mentioned - from corporate profits and not from revenues.

Most of the revenue comes from natural gas and oil royalties, which amounted to NIS 842 million in 2019. Most of the amount, about NIS 836 million, is due to the natural gas from Tamar Holding, an amount that reflects the production of about 10.5 BCM (billion cubic meters) of natural gas and about 482,000 barrels of accompanying condensate.

More on:

"Flame out of the sea": Blast into a whale rig

Noble Energy: "We have successfully dealt with the whale rig failure"

The Tamar reservoir will supply gas to the electricity company

This is a decrease of 2.5% compared to 2018, due to a decrease in the dollar exchange rate of 7.79%, resulting from a temporary reduction in production due to handling of the Tamar rig in April 2019. The rest of the sum is divided as follows: NIS 2.7 million from Meged, 2.7 strengthens Thetis Sea and NIS 327,000 from whale holding. Revenues from Tamar's strong royalties from the start of production in 2013 to the present date amount to NIS 5.18 billion.

In addition to natural gas and oil royalties, in 2019 quarry royalties totaled NIS 10.7 million and revenues of NIS 5.6 million from fees. In addition, revenues of NIS 5.9 million were recorded from the second competitive process for granting new licenses for natural gas and oil exploration in Israel's economic water: NIS 1.4 million was received from the sale of information packages sold to companies interested in the competition process documents, and NIS 4.5 million was paid as a signature grant by the companies. Winners. The Ministry of Energy expects a significant increase in royalty revenues in 2020 to a new record of NIS 1.5 billion.