Israel’s Leviathan partners tumble as regulator revisits deal

Israel’s Leviathan partners tumble as regulator revisits deal

YAACOV BENMELEH

TEL AVIV (Bloomberg) -- Shares of Israel’s partners in the Leviathan natural gas field fell as the Antitrust Authority said it would reconsider an agreement that could allow other companies to hold stakes in the exploratory find.

Delek Group Ltd. which owns a stake in the Leviathan field, dropped 6.3%, the most in more than three years, to 1,090 shekels by the close in Tel Aviv. Delek Drilling LP and Avner Oil Exploration LLP plunged 6.1% and 5.3%, respectively.

“If this is true, it is will cause regulatory uncertainty and seriously delay the development of the Leviathan field,” Noam Pincu, an analyst at Psagot Investment House in Tel Aviv, said by phone. “The government has to respond to this. The issue is too big.”

Israel’s natural gas companies are seeking to boost sales through the development of Israel’s two offshore natural gas fields. Shares of Delek Group had plunged more than 8% in December through Dec. 21 amid a rout in global oil prices.

A meeting between antitrust authority officials and representatives of Delek and Noble Energy is scheduled for 6:30 p.m. in Tel Aviv, according to a spokesman of the authority.