Archive for ‘Israeli Economy’

April 25, 2012

Israeli Companies are Building India’s Robotic Weapons

by Gedalyah Reback

India has been beefing up its naval abilities ever since Pakistani terrorists landed in Mumbai in 2008 and killed nearly 200 people. It’s the latest in a mostly positive stringof encounters with Israeli military companies, especially welcome after what happened to IMI.

The latest Indian project involves unmanned drones, but this time in the water. Mahindra & Mahindra Ltd. (MM), an Indian sporting company, is teaming with Rafael to make the machine happen. India has been augmenting its navy since the 2008 attacks anticipating more break-in attempts, especially from Pakistan. Much of the development is focusing on defending the coastline of Gujarat, the largest state in India. The latest project adds to the efforts, announced in January, of adding a second aerial unmanned squadron to the Indian arsenal. That project involves Israel Aerospace Industries.

Robotics as a non-military venture is also gaining traction. Recently, the National Committee on Robotics and Automation and the Confederation of Indian Industry (CII) sent reps to Israel for further research and venture development with Israeli companies. They met with the head of the Israeli Robotics Association, Professor Zvi Shiller. According to his bio, he has been involved in projects with the Israeli Defense Ministry, Science Ministry and even its Space Agency. Meeting Shiller might not have any other political implications, but the fact he is on staff at Ariel University (in the West Bank) was not at all on the list of concerns, let alone the radar whatsoever, of the Indian delegation.

This is all happening despite obstacles in the Israeli-Indian relationship, including accusations Israel Military Industries, owned by the Israeli government, has been bribing its way to Indian contracts. Various reports range from $44 to $70 million in seized assets to serve as a fine for the breach in trust, which is actually included in the contracts India’s Defense Ministry signs. That action brought up issues inside Israel regarding the ethical conduct of its major companies in general. Now with another country taking notice of such business practices in a public way, it’s an especially humiliating prospect. In the meantime, IMI is appealing the Indian decision. It is unlikely they’ll make headway, since they are only one of seven companies India has blacklisted (India won’t make defense deals with these companies for at least 10 years).

April 22, 2012

Israeli Gas Drillers Get Nearly $1 Billion in Investments from US

by Gedalyah Reback

It was announced April 22nd that the group of owners developing one Israel’s large offshore gas fields, Tamar, will be getting just over $900 million in loans from a consortium of 11 companies and banks in the near future.  The money is a huge boon for the developing Israeli energy industry.  It also indicates the potential for the export element of the business the industry is aiming for.  The connections are coming from principle Tamar developer Noble Energy, based in Texas, which owns about a third of the field.

In January, the controlling group signed a deal with a smaller Israeli energy provider to supply gas for nearly 20 years, declaring they wished to increase competition in the Israeli market.  That deal is worth $5 billion.

Tamar is a large gas field whose vast area has caused diplomatic and security issues to pop up with Lebanon and Hezbollah. The field is one of several that is also the target of joint development projects with Cyprus. Cyprus’ interests have angered Turkey, creating tension with Ankara as well. Turkey does not recognize the government of (southern) Cyprus, preferring the Turkish Northern Cyprus government as the official representative of the island. Israel has been looking at enlarging its navy in anticipation of security issues to offshore development sites in the future. Lebanon has refused to negotiate with Israel up till this point, instead filing complaints with international bodies and refusing to ratify a joint development agreement with Cyprus.

The symbols of the main companies involved are here: Noble Energy (NBL); Delek Drilling (DEDRL); Isramco Negev (Isral) & Avner Oil (Avnrl).

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