Early Days – Establishment and National Vision
Naphtha, founded in 1956, is one of the oldest and most significant companies in Israel’s energy sector. The company was established as a joint initiative of several key entities in the economy, including Mekorot Water Company, the Workers’ Company, and a group of private investors, with the aim of advancing oil and natural gas exploration in the young state.
Groundbreaking Discovery in the Negev
The company’s first significant achievement came in 1958 when it discovered natural gas in the Rosh Zohar field, south of Arad. This discovery was groundbreaking and represented the first natural gas discovery in the Eastern Mediterranean. This field was considered the largest in Israel until the significant gas discoveries in the Mediterranean Sea in the 2000s.
From Private to Government-Owned and Back
Despite initial success, the company faced financial difficulties that led to increasing government involvement. In the 1960s, Naphtha became a government-owned company but continued its vigorous oil and gas exploration activities. By 1990, the company had conducted 140 drillings, with significant successes in the Rosh Zohar field and the Heletz oil field.
Privatization and Expansion
A turning point in the company’s history occurred in 1989 when it was listed on the Tel Aviv Stock Exchange as part of its privatization process. In 1996, J.O.E.L. Jerusalem Oil Exploration, controlled by businessmen Kobi Maimon and Haim Tsuff, acquired control of the company.
Global Growth and Business Diversification
Starting in the 1990s, Naphtha expanded its operations beyond Israel’s borders. The company operated projects in Western Siberia, Congo, and later in the United States. Simultaneously, from 1996, it expanded its activities into income-producing real estate, initially in Israel and later in Europe, particularly in Germany, Hungary, and the Czech Republic.
Recent Successes and Future Outlook
A significant milestone in the company’s history was reached in 2017 when it distributed its first dividend of 300 million shekels, sourced from the profits of the Tamar gas field. In recent years, the company has continued its development, including merging various operations and reorganizing its holdings.
Today, Naphtha continues to be a significant player in Israel’s energy sector, with diverse activities including oil and gas exploration, real estate, and even tourism. The company exemplifies the development and transformation processes that the Israeli energy sector has undergone – from a government-owned company focused on local oil and gas exploration to a diversified business corporation with international operations.