Isramco, an Israeli oil and gas exploration company, has played a significant role in the development of Israel’s energy sector. Founded in 1982 by businessman Joseph (Joe) Elmaleh and American-Jewish millionaire Armand Hammer, Isramco was established under the holding company J.O.E.L. (Jerusalem Oil Exploration Ltd)【7†source】. The company quickly made its mark by acquiring extensive drilling licenses across Israel, including the Dead Sea area, although early attempts in the 1980s were not commercially successful.
In 1985, Isramco established “Negev 1,” a limited partnership that included major stakeholders such as Delek Group, Passport Ltd., and other local entities. Despite extensive investments, the partnership dissolved in 1988 due to unsuccessful exploration results. However, undeterred by early setbacks, Isramco and its partners launched “Negev 2” in 1989, which was later listed on the Tel Aviv Stock Exchange
Breakthrough with Tamar Gas Field
Isramco’s perseverance paid off with significant investments and the acquisition of strategic assets. The company’s major breakthrough came with its involvement in the Tamar gas field, one of Israel’s largest gas discoveries. Tamar, discovered in 2009, significantly boosted Israel’s natural gas reserves and positioned Isramco as a key player in the sector. The company’s revenues saw a notable increase from the Tamar field’s production, contributing substantially to its financial health.
Financial Performance in 2023: Resilience Amidst Challenges
In 2023, Isramco reported revenues of $382 million, with an EBITDA of $318 million and a net profit of $133 million. These figures, while slightly lower than the previous year, underscore the company’s resilience and strategic focus on expanding production capabilities. The temporary halt in production at Tamar in late 2023, due to geopolitical tensions, did impact operations, but Isramco continued to invest in infrastructure improvements and export agreements, particularly with Egypt.
Isramco’s journey reflects a blend of entrepreneurial spirit, strategic partnerships, and resilient operations. From its early challenges to becoming a cornerstone of Israel’s energy independence, Isramco’s evolution is a testament to its enduring impact on the country’s energy landscape.