Delek in talks to divest stake in Israeli offshore gas field for $1.1bn

6 April 2021 (Last Updated April 6th, 2021 17:02)

Israel’s Delek Drilling is reportedly negotiating to divest its stake in Tamar gas field located in the Levantine basin of the Eastern Mediterranean Sea.

Delek in talks to divest stake in Israeli offshore gas field for $1.1bn
Delek Drilling owns 22% stake in the Tamar project. Credit: Galen Crout / Unsplash.

Israel’s Delek Drilling is reportedly negotiating to divest its stake in Tamar gas field located in the Levantine basin of the Eastern Mediterranean Sea.

According to financial news website Calcalist, the Israeli firm intends to sell its entire stake in the field for $1.1bn.

The company is required to offload its stake in the Tamar field under a government framework to boost competition in the sector.

One source familiar with the matter was cited by Israeli business news agency Globes as saying: “To renew interest in the market on the deal and there is no indication that there are any advanced talks.”

Delek Drilling owns a 22% stake in the Tamar project and its other partners include Noble Energy (25%), Isramco (28.75%), Tamar Petroleum (16.75%), Dor Gas (4%) and Everest (3.5%).

The field produces natural gas through six subsea wells. The production wells are connected to the processing and production platform, a system for gas and condensate transmission from the platform to the shore, via a subsea production system.

In Israel, Delek Group’s subsidiaries Delek Drilling and Avner Oil Exploration own a stake of 22.67% each in Leviathan gas field located in the eastern Mediterranean Sea.

The Leviathan field is operated by Noble Energy with a 39.66% stake while Ratio Oil Exploration owns the remaining 15% interest.

According to the estimates, the field contains natural gas reserves of approximately 605 billion cubic metres (bcm) and condensate reserves of about 39 million metric barrels (Mmbbl).