British Gas defers drilling off Haifa.

(From Israel Business Arena)

Byline: David Hayoun

A gas exploration partnership headed by British Gas today decided to postpone its decision on extensive drilling under its Gal B concession. The planned drilling off the Haifa coast was to have been one of the largest in Israel in recent years.

The partnership explained it had delayed the drilling "in view of the uncertainty about the taxation rate on gas producers." The explanation is surprising, since the Knesset Economics Committee this week rejected the Ministry of Finance's plan to increase gas exploration royalties. The committee's refusal had been expected to …