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    Israel’s Delek unloads stake in Tamar gas field

Summary

Abu Dhabi’s Mubadala Petroleum paid more than a billion dollars for Delek’s share.

by: Daniel Graeber

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Complimentary, Natural Gas & LNG News, Middle East, Corporate, Mergers & Acquisitions, Political, Regulation, News By Country, Israel, Israel

Israel’s Delek unloads stake in Tamar gas field

Israeli energy company Delek Drilling said September 2 it had signed an agreement with Abu Dhabi’s Mubadala Petroleum for the sale of its minority stake in the Tamar gas field off the coast of Israel.

Delek held a 22% take in Tamar. Mubadala agreed to pay $1.02bn to take on that share. Rumours of the sale first surfaced in June, when sources familiar with the transaction first told NGW about the potential deal.

Delek is obligated to sell its interest in order to reduce its large market share because the Israeli government wants to enhance the competitiveness of its gas sector.

Gas from Tamar is transmitted to an onshore terminal and distributed to the Israeli market. Some of the gas is also exported to Jordan and Egypt.

“Our focus right now in Delek Drilling is on the expansion of our mega Leviathan reservoir and on creating new markets in the region and beyond for our produced natural gas,” Delek CEO Yossi Aub said.

Delek holds a 45.3% stake in the Leviathan natural gas field, the largest in Israel.

Chevron operates Leviathan with a 39.7% interest. The field was brought on stream in December 2019 and is projected to deliver 10bn m3 of gas this year.