Delek Group confirms bid for Chevron’s North Sea oilfields

30 April 2019 (Last Updated September 21st, 2020 14:22)

Israel’s Delek Group has confirmed that it has submitted a bid to acquire Chevron’s oil and gas fields in the UK North Sea.

Israel’s Delek Group has confirmed that it has submitted a bid to acquire Chevron’s oil and gas fields in the UK North Sea.

In a statement, the company said that its wholly-owned subsidiary Ithaca Energy has submitted a proposal to acquire Chevron’s North Sea assets.

The assets include Chevron’s interests in the Alba, Alder, Britannia (and its satellites), Captain, Elgin/ Franklin, Erskine and Jade oil and gas fields located in the UK North Sea.

Delek expects that if the transaction advances, it would be completed by 2019. The statement did not provide any financial details.

“Delek expects that if the transaction advances, it would be completed by 2019.”

The company will fund the acquisition through a combination of conventional non-recourse debt finance and existing resources. However, it also noted that the submission of a bid may not result into the signing of the binding sale and purchase agreement or completion of the transaction.

Chevron initiated the process to sell its central North Sea oil and gas fields in July last year. The company was assisted by the US investment bank Morgan Stanley in the process.

Last week, Reuters reported that Delek Group is working to purchase Chevron’s oil and gas fields in the British North Sea, which have a combined value of $2bn. One of the sources told Reuters that Delek is estimated to pay around $1.8bn to $2bn for the acquisition.