Jerusalem (Reuters) - Israeli Prime Minister Benjamin Netanyahu will decide in the coming weeks on the scale of charges that the Jewish State should claim for his Mediterranean huge offshore gas discoveries, he said Sunday.
Netanyahu told his cabinet he would meet with this week with the Group of experts nominated by the Ministry of Finance has made its proposal to royalty known as Sheshinski Committee as well as the Ministers concerned and investors, to make its own proposal would be submitted to cabinet vote.
He added that money accumulated royalties must go to a national fund whose main purpose is to improve Israel spending on defence and education needs.
"I decide on my recommendation to the Cabinet in the short term and in one of the next meetings of the cabinet, I present you this recommendation decision," said Netanyahu.
Israel of natural gas production is set to soar in the coming years after the discovery of two large fields to off the shore of the Mediterranean, which could Israel an exporter of energy.
In its final report published last week held a commission draft royalty base rate on the oil and gas revenues to 12.5%, but the addition of escalators dependent of the profitability that could reach up to 20 to 50 percent.
It is less than its recommendation of up to 60% which had been made in an interim report was published in November. Finance Minister Yuval Steinitz said last week that he would soon its own recommendations to Netanyahu.
The Government takes now about 30% of the revenues of only existing gas in the country field in a combination of taxes and royalties.
Two newly discovered gas fields are defined to significantly boost the sector and together could generate up to 4 billion in annual revenue for Israel, officials said.
Tamar, field discovered in 2009 by a group led by US and Delek energy Israel Noble Energy has estimated reserves of 8.4 billion cubic feet. Last month partners confirmed another new discovery, the nearby field of Leviathan, is twice as high.
Energy companies say, they have spent years to explore in its territorial waters and Israel, and argue that any levy taxes would constitute a breach of contract and frighten the future investors. Also opposed this plan is the Minister of Infrastructure Uzi Landau, who warned delays in the production of gas.
Any proposed change is necessary for approval of cabinet and Parliament.
(Written by Ori Lewis and Steven Scheer.) (Editing by Greg Mahlich)
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