September 28, 2017 / 12:19 PM / a year ago

Israeli court says will not dismiss suit against Tamar partners

JERUSALEM, Sept 28 (Reuters) - Israel's Supreme Court on Thursday said it would not dismiss a class-action suit against the partners in the Tamar natural gas field regarding the price of gas in a major supply deal.

Shares in the Tamar consortium tumbled after the decision, with Delek Drilling down 3.4 percent, Isramco Negev down 1.8 percent and Tamar Petroleum off 1.7 percent in Tel Aviv.

The case refers to a 15-year deal signed with state-owned utility Israel Electric Corp before the field came online in 2013. According to a court document, IEC committed to buy a minimum of 42 billion cubic meters of gas a year at a base price of $5.042 per million British thermal units (mmBtu).

A 2014 class-action suit claimed the Tamar partners took advantage of having the country's only gas field to secure a price more than double what was acceptable, the court said.

After the Supreme Court rejected their petition to dismiss the suit and sent it back to a district court, the Tamar partners said in a statement they are still certain the case will ultimately be thrown out. (Reporting by Ari Rabinovitch; Editing by Tova Cohen)

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