Energy and Natural Resources

  • Our Energy and Natural Resources practice provides legal capabilities across the full spectrum of the energy industry, and has a long tradition of representing the major players operating in the water, electricity, oil and natural gas sector in Israel on most of their significant projects, transactional work, regulatory issues and disputes. Over the last few years the activity in the energy and natural resources sectors in Israel has grown significantly and has brought with it projects of magnitude and complexity not previously seen in the Israeli market.

     

    The highly-qualified lawyers in our Energy and Natural Resources Practice Group, ranked first in their field by the Legal 500, have the necessary skills, experience and knowledge to deal with such complex and innovative transactions and resolve any disputes that may arise.

     

    S. Horowitz & Co. is one of the few firms in Israel that can offer energy companies a one-stop shop that offers both transactional and dispute resolution services which address the issues energy companies face when operating in this market.

     

    Our clients include oil companies, gas companies, producers and distributors of electricity, power operators, mineral companies, service companies, financiers and insurers involved in the following sectors:

     

    • Water, including delivery pipelines and filtration and treatment facilities
    • Electricity, including power generation, transmission, and distribution projects
    • Oil, including fuel delivery and storage
    • Natural gas, including many of the major gas pipeline projects in Israel
    • Recycling facilities, including the multi-purpose facility treating most of Israel’s toxic waste

     

    Our team has an outstanding record of advising clients on a broad range of matters relating to energy and natural resources as well as in avoiding or resolving disputes, including those transactions and disputes relating to the tendering process for power, water, natural gas and oil projects; off-take agreements; commercial agreements of all types relating to the purchase of electricity, oil and gas, construction contracts and operating agreements; the finance of energy related projects; and regulatory and environmental matters.

    • Representing the Israel Electric Corporation on numerous matters, including:

     

    (i) the tender process for the engineering, procurement, supply and supervision of the installation and commissioning of 3 power plant units to be built in the Negev;

    (ii) the tender process for the engineering, procurement, supply and supervision of the installation and commissioning of 8 DeNox high dust power plant units. This was a project to reduce carbon emissions from Israel’s major power stations (the Rothenberg Power station in South Israel and two power plant sites in Hadera) using the selective catalytic redactive (SER) system;

    (iii) the offtake agreement (Gas Supply and Purchase Agreement and its collateralisation) in respect of the Tamar Gas fields – contract value of $8 billion, the largest (in value) energy project ever undertaken in Israel; and

    (iv) on the design, delivery, installation, integration, testing, and operation of a Smart Grid system to enable bi-directional communication to smart meters, in-home display of consumption data, and low voltage power lines

     

    • Representing the IVM consortium (which comprised Minrav Holdings Ltd. and Sacyr Vallehermoso SA) which was successfully awarded the tender to build and operate a seawater desalination plant in Ashdod, on all major legal aspects relating to the project and in particular the terms of the tender/concession awarded to it by Mekorot (the Israeli national water company)
    • Representing Readymix Israel Ltd., Israel's leading producer and supplier of raw materials for the construction industry, on a long term contract for the supply of natural gas to Readymix's lime production plant and the conversion of the plant's system from fuel to natural gas
    • Representing Israel Energy Initiatives Ltd. in connection with its proposed production of clean transportation fuels from oil shale, utilizing its in-situ conversion technology, located in the Shfela basin (which is estimated to hold 150 billion barrels of oil equivalent)
    • Representing the Israel Infrastructure Fund (Israel's largest infrastructure private equity fund) on:

     

    (i) the US$ 120 million acquisition of Via Maris Desalination Ltd. from the Azrieli Group (the company engages in the construction, operation, and management of the Palmachim water desalination plant; and

    (ii) in the US$ 110 million preferred stock financing (the first of its kind in Israel) of Dalia Power Energies Ltd., for the planning and construction of an 834MW private gas-powered electricity station in Tel Tzafit, the largest private power plant in Israel operated by natural gas

     

    • Representing a consortium of banks and financial institutions in connection with the financing of the building of a hydro-cracker by Oil Refineries Ltd., project value US$ 550 million
    • Representing Mizrahi Bank (senior lender) in connection with its participation in the NIS 2 billion (approximately US $500 million) financing of the construction of Dorad Energy’s independent power station (Israel’s largest private power station with an output of 850 MW – equivalent to 8% of Israel's total installed capacity)
    • Representing Paz Oil Company Ltd., Israel's largest fuel company on numerous energy related matters, including representing Paz:

     

    (i) in successful judicial review proceedings before the Supreme Court, against the decision of the Controller of Oil and Gas to decrease the profit margin of fuel companies on the sale of certain fuel products that fall under the controlled prices regime; and

    (ii) on various tenders for the design, construction and operation of power stations

     

    • Representing Deutsche Bank on its equity bridge financing to Negev Energy- Ashalim Finance Ltd., the proceeds of which are to be used as part of the equity financing of a 110 MW solar plant located in Ashalim (in the Negev desert) that will be constructed and operated by a SPV of Shikiun UBinui and Abengoa on a BOT basis
    • Representing Supergas Israel Gas Distribution Co. Ltd. in connection with its bid for the construction and operation of a natural gas distribution system for the South of Israel
    • Chambers Global 2016: Maintains a good reputation for its handling of project financings. "The firm is very, very strong and very well known in projects."

    • The European Legal 500, 2013 says that S. Horowitz & Co "handles the whole spectrum of projects and energy issues and acts for lenders, investors, sponsors, concessionaires and the State of Israel"

    • The Chambers Global Client's Guide, 2011 recognises that the team is made up of "fantastic lawyers, with impressive expertise in financing matters"

    • The European Legal 500, 2012 notes the team's "extensive experience advising on major projects in various sectors"

    • The European Legal 500, 2011 acknowledges the team's "excellent expertise in banking and finance for energy clients"