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    Delek closes Tamar sale to Mubadala

Summary

The Israeli firm is retaining its interest in the larger Leviathan field.

by: Joseph Murphy

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Delek closes Tamar sale to Mubadala

Israel's Delek announced on December 9 it had completed the sale of its 22% stake in the Tamar gas field off Israel to the UAE's Mubadala Petroleum, netting $1.1bn.

The pair signed a binding agreement in September on the sale, which will see Delek collect $1.025bn plus an extra $75mn for gas flow from the reservoir since the start of this year. Delek also said it would pay off its bonds related to the project and return $100mn to shareholders. 

Delek CEO Yossi Abu hailed the deal as the largest commercial agreement to be signed between the UAE and Israel since the signing of the Abraham Accords in September last year, which formally normalised relations between the two countries. He added that the sale would deliver "considerable value" for the company's shareholders.

Delek retains its position at the larger Leviathan field off Israel, where Abu said an expansion plan would soon be revealed.

Mubadala added that the purchase "strengthens our gas-biased portfolio in line with our energy transition goals," and was "another example of our solid strategy to seek high quality, ESG-compliant investments in action."

The 300bn-m3 Tamar field was discovered by Delek and its partners in 2009 and was brought on stream in 2013. It delivers gas to the Israeli market as well as consumers in Egypt and Jordan. Other project shareholders include operator Chevron, which has a 25% stake, Isramco, which has 28.75%, Tamar Petroleum with 16.75%, Dor with 4% and Everest with 3.5%.