Avner Oil - Annual Report 2011 - Delek Energy Systems

7.17 Human resourcesThe Partnership is administrated by the general partner under the provisions of the limited partnershipagreement. The general partner provides administration services for the Limited Partnership,including, inter alia, managers (the directors and CEO of the general partner) (for details seeRegulations 26 and 26A to the fourth part of this report) and rent for the Partnership’s offices. As ofDecember 31, 2010 the Partnership did not have any employees. As of December 31, 2011 thePartnership employs 7 employees, including one officer. As of January 1, 2012 the Partnershipemploys two additional employees, including one officer. The Partnership and Delek Drillilng jointlyemploy these employees and officers, bearing equal shares of the employment costs.In addition to the general partner's managers and the Partnership's employees as aforesaid, the LimitedPartnerships use the services of consultants (including attorneys, geological and financialconsultants and other consultants) as required. It is also noted that under the operatingagreements in the various projects, the project operator employs staff for management andoperation of the projects. There are no employee-employer relations between employees of theproject operator and the Partnership, and the Partnership has no direct liability for employeeseverance with regard to the operator's employees.On March 1, 2011 Irit Sade Tobias began serving as the chief legal counsel and secretary of the generalpartner and on January 2, 2012, she began serving also as a VP of the general partner. OnOctober 2, 2012, Edward Ronen began serving as CFO of the general partner. On October 2,2011, Yaniv Friedman started serving as VP strategy in the Partnership.7.18 Suppliers and raw materialsA project operator is appointed for each drilling project in which the Partnership has rights. Theoperator contracts with professional contractors, which have the proper equipment, for each andevery project. Generally, there are no contractors in Israel involved in offshore drillings, seismicsurveys or development and infrastructure works of the type conducted by the Partnership and itspartners in the various projects. Therefore, they need to contract with foreign contractors for thenecessary services. Offshore drilling equipment is chartered and transported from all over the worldaccording to availability, project type and special needs of each project. Another importantparameter that has impact on this matter is the price of crude oil: an increase in the price of crudeoil usually affects the availability of contractors and required equipment and vice versa. ThePartnership does not directly contract with suppliers or professional contractors, and suchcontracting is left to the project operators. Steel is a significant raw material used in projects and inexploration and production equipment, used for pipes, drill bits and platform structures. . Globalmetal prices have increased significantly in recent years.7.19 Working capitalThe Partnership offers its customers credit for periods that range between 20 and 15 days. Theaverage number of credit days during 2011 was approximately 23 days.The average amount of supplier credit in 2011 was NIS 16.2 million.Payments of the Partnership to the joint ventures operators are made under the terms in eachoperating agreement.A-136